Milei's Austerity Agenda in Argentina

BUENOS AIRES (Reuters) – Argentine President Javier Milei's dramatic austerity agenda has helped lower inflation, but the slowdown has come at the cost of consumption in a battered economy.

More than half of the country has fallen into poverty due to these measures. The libertarian president, nearing a year in office, celebrates falling inflation as a key accomplishment following significant adjustments in public spending.

Data from Argentina's statistics agency INDEC is expected to show a month-on-month inflation decrease to 3.0% in October, down from 4.2% in August and 3.5% in September, according to a Reuters poll of analysts.

This positive news can be hard to grasp for Argentines who are tightening their belts to meet daily expenses. The government’s cuts to subsidies on public services have increased costs significantly, while public sector layoffs are on the rise. Annual inflation remained high at 209% in September, severely impacting purchasing power.

Maria Sunilda Correa, who works in a poultry store, noted, "Sales have been dropping a lot; perhaps people come more to buy on a daily basis, small quantities, and you can see the difference."

Meat consumption has decreased, especially beef, after Milei ended the previous government's price freeze. Beef consumption fell in the first half of the year to its lowest level in 13 years, according to the industry group Ciccra.

Gabriel Segovia, a 52-year-old butcher in Buenos Aires, commented, "The price of meat has not gone up these months because there is very little consumption. As consumption goes down, sales also go down. And well, it is a bit complicated."