Milei's Argentina
in Numbers

Elon Musk, Donald Trump, and Vivek Ramaswamy can't stop raving about Argentina, pointing to its plummeting inflation as a model for economic reform. Headlines worldwide celebrate the country's "miraculous" turnaround. So, what's really happening in Milei's Argentina?

Let's break it down.

Inflation has gone down but overall yearly inflation is still at 193%

(As of November 2024)

Under the previous government

Inflation had been growing since 2021.

When Milei took office

Inflation spiked dramatically.

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Why did this happen?

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Though inflacion has started to go down, prices stay high, and continue to go up.

Inflation might be slowing down, but prices are still climbing—it’s just happening less quickly. The rate of inflation, or how fast prices are going up, has dropped, but that doesn’t mean inflation is gone. Even if inflation hit zero, prices wouldn’t magically drop—they’d just stop getting worse.

Want to see it in action? Play around with inflation rates for the next couple of months and watch how it messes with the price of something simple, like a steak.

Meanwhile, salaries have not kept up to the rate of inflation

How inflation feels.

Most people don’t notice the rate of inflation itself—they feel the difference at the checkout line, comparing what something cost few weeks or months weeks ago to what it costs now.

Cutting subsidies and removing price controls has sent the cost of certain items skyrocketing, hitting consumers especially hard.

Last year, commuting on the subway everyday cost around $3,480 a month. Now it costs around $32,506

Gas + Electricity

Rent controls

Milei’s administration obtained a fiscal surplus 100 days in, largely through sharp cuts to pensions.

For the first time since 2016, Argentina’s minimum pension can not cover the cost of basic goods.

Public Sector Layoffs

Some prices for basic goods are the same or higher than in Spain, but with salaries 9 times lower.

Poverty has increased.

Future

Dollarization. / Will Milei have to choose between devaluing the peso and accepting another IMF loan?