Poor Argentina... If it isn't one thing, it's another...

most of us can't even imagine 30% inflation, but let me give you a small example of what i've experienced in the six years i've been living part-time in buenos aires... when i started coming to argentina in 2004, i paid 5 pesos ($1.50) for a haircut and usually threw in a one peso tip (not something the argentines do, i can tell you)... when i got my hair cut last month, it was up to 20 pesos ($5.50) and i threw in a two peso tip...

for those who are struggling to get by - and there are plenty of them in argentina - i simply don't know how they can make it...

Argentine consumers expect inflation in next 12 months to reach 30%

Argentines with the lowest income expect consumer prices to rise 30% over the coming year, up from the 20% increase they forecast in January, the Buenos Aires-based University said in an e-mailed statement.

[...]

A January survey of 56 economists by Argentina’s central bank forecast inflation of 10.8% over the next 12 months. The gap between the central bank and Di Tella is the result of the “scarce credibility that the official reports have,” the university said in the statement.

Economists and politicians including Vice-President Julio Cobos have questioned the government’s inflation reports since January 2007, when then President Nestor Kirchner began changing personnel at the national statistics agency.

Javier Paz, who tracks inflation at Buenos Aires-based Ecolatina research company said prices rose 2.2% in January from December. The government said prices rose 1% over the same period.

i posted earlier on the torrential rains over the past week in buenos aires... so, imagine dealing with prices rising into the stratosphere and then experiencing this at a railroad crossing...

Tsunami en Palermo Soho
(link to video clip)

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