“There is a lot of searching for prices, it also happens that something you buy today for 100 pesos, tomorrow it costs 120, 130, from one month to another the prices go up 20%, no more, but it doesn’t surprise you anymore, we are very used to that for years, not now”, adds the also sociologist.
Argentina registered a record inflation of 54%. In 2020, with the pandemic, it dropped to 36% per year, there were even rates of 20%.
In 2021 it reached 50%, and just in June it had an inflation of 64%. .
According to information from tradingeconomics.com Argentina’s inflation is the second highest in the American continent, only after Venezuela with a rate of 167% in May.
After the pandemic, and the increases in products due to the interruption in supply chains and the increase in demand for products, in 2020 and 2021 the war in Ukraine accelerated the rise in the prices of products and services, since the end of February past, especially of food and energy in the world.
USA
The United States, the world’s largest economy, reported increases not seen for 40 years. Last June its inflation reached 9.1%.
However, the central bank, the Federal Reserve, still maintains an expansive level in the reference interest rate that is between 1.5% and 1.75%. In other words, it still does not restrict consumption through higher levels of interest rates.
From the perspective of Jonathan Heath, deputy governor of the Bank of Mexico (Banxico), the Fed’s position should be more restrictive to resolve the issue of inflation, in addition to the fact that it is vital for inflation to also subside in Mexico.
“It’s not just the Fed, it’s all the central banks in the world,” he explained to Expansión.
European Union
Just last Thursday, the European Central Bank (ECB) raised its interest rate by half a percentage point, to 0.50%. This is the first increase in 11 years to curb inflation in the euro area, which shot up to 8.6% in June.
Canada
Last month, Canada’s inflation hit 40-year-old records, hitting 8.1%, according to the statistics department. The increases in the price of gasoline were the main driver of inflation, followed by the increase in the demand for products worldwide, after less restrictive measures against Covid-19.
In Asian countries, the highest levels of inflation are observed in Lebanon, with 210% per year; Sir Lanka, with 54.6%, and Iran with 52.5% in June.
The governments of nations with high inflation rates have put in place support to reduce inflation. In Canada, for example, they raised the amount of pensions for people over 75 years of age by 10%, discounted child care services and gave financial support to those who rent their house-room.
Mexico
The Mexican government has also generated actions to contain inflation, without which, inflation would be around 11% and not 8%, according to estimates by the deputy governor of Banxico.
Before the presentation, last June, of the Package Against Inflation and Famine (PACIC), the Mexican government already provided gasoline subsidies, and this action, included in the package, is the one that has helped to contain the inflation, explained Alejandro Hernández, president of the Mexican Institute of Finance Executives (IMEF).
“What we see is a generalized inflation worldwide, there are some larger and more important economies than the Mexican one, which have higher levels of inflation, and vice versa, it is a general evil in the world. The important thing to learn and observe from other countries with good results is to replicate, commented
Turkey
Turkey registered an inflationary increase of 78.62% per year last June, the highest level since 1998.
The Turkish currency lost half of its value in the last year against the dollar, and it is the main reason for the rise in prices. Its central bank forecasts that inflation will reach 42.8% by the end of 2022.
The research group on Inflation (Enag), made up of independent Turkish economists, stated on Monday of last week that the inflation it actually reaches 175.5% in one year, more than double the official rate.
With information from AFP and Reuters.
