“Overnight 20% Price Jump Supercharges Argentine Inflation Crisis”
July 8, 2022
“The night before a political bombshell had dropped: the economy minister, Martin Guzman, had suddenly resigned. And Argentines, long accustomed to financial chaos, knew the current crisis was about to get a lot worse. So before the peso could plunge when markets reopened, and before retailers could jack up prices, they wanted to buy the essentials as soon as possible.
It became a race against inflation in a country that already had one of the highest rates anywhere — an annual 60% as of May. Argentina’s parallel exchange rate, untethered from the government’s strict currency controls, has fallen 17% so far this week, prompting Buenos Aires shop owners to post signs announcing a 20% mark-up on all listed prices.
Prices on mattresses and bicycles jumped 18% in just one week, while TVs now cost 13% more and price tags on cell phones swelled 8%, according to high-frequency data analyzed by Buenos Aires-based consulting firm Ecolatina…”