BUENOS AIRES (Reuters) – Poverty levels in Argentina hit 57.4 per cent in January, the highest in at least 20 years, according to a report by the Catholic University of Argentina (UCA) cited by local media on Sunday.
According to the report, the peso currency devaluation carried out by President Javier Milei shortly after his inauguration in early December – and the price hikes caused by it – exacerbated poverty levels, which closed the year at 49.5pc.
"The true inheritance of the caste model: Six out of every 10 Argentines are poor," Milei, a libertarian, said in a social media post late on Saturday.
Milei took office promising to "dollarise" the economy, tame an annual inflation rate of more than 200pc, eliminate the fiscal deficit and end benefits for Argentina's political dynasties, which Milei calls "the caste."
In December, his government rolled out sweeping economic reforms, primarily a 54pc peso devaluation against the US dollar, causing Argentines' incomes to collapse as prices shot up.
Read more: Dollar pull effect: How a weaker currency makes you hostage to dollar
Other measures included slashing energy subisidies and transportation subsidies and rolling out tax hikes aimed at reaching fiscal balance.
On Friday, Argentina's economy ministry reported a January budget surplus of 518.41 billion pesos ($620.85 million), the first time the number has been in the green since August 2012.
Reuters was not immediately able to see a copy of the report. UCA did not respond to a request for comment.
Read more: Argentina inflation: Soup kitchens serving the hungry poor are on brink of collapse
Last week, Argentina's statistics agency published annual inflation of 254 per cent as January inflation edged down to 20.6pc from 25.5pc a month earlier, just below forecasts of 257pc and 21pc according to analysts polled by Reuters.
The result is the even the soup kitchens meant to serve the needy are finding it hard to survive and continue their services.