Argentina's Inflation Dips Below 200% Amid Austerity Measures

Argentina's inflation rate has dropped below 200% for the first time in a year, as the government implements strict austerity measures. The dip, while notable, has adversely affected consumption in an economy grappling with high poverty rates and reduced purchasing power.

In a significant economic shift, Argentina's inflation rate has dropped to 193%, falling below the critical 200% mark for the first time in nearly a year. This change follows President Javier Milei's rigorous austerity policies aimed at stabilizing the nation's economy.

The decrease in inflation, partly driven by substantial reductions in public spending, comes at a heavy cost. With over half the population living in poverty, the economy is feeling the strain of decreased consumption. October's monthly inflation fell to 2.7% from September's 3.5%, marking the lowest rate since November 2021.

Despite rent and utilities driving a 5.4% increase in prices, sectors like transport and food saw a modest 1.2% rise. However, Argentines are experiencing hardship, as the government's cuts to subsidies and public sector jobs have hit purchasing power. The steak-loving nation has seen beef consumption sinking to a 13-year low, highlighting the challenges faced by consumers like butcher Gabriel Segovia.

(With inputs from agencies.)