Argentina inflation: Soup kitchens serving the hungry poor are on brink of collapse
Business
Milei pushed the prices further up through peso devaluation, subsidy cuts, loosening price controls
BUENOS AIRES (Reuters) - A week ago, 20 kilogrammes (44 pounds) of pasta was enough to feed the dozens of families who visit the Sal de la Tierra soup kitchen in Villa Fiorito, a poor Buenos Aires suburb beset by the economic crisis ravaging Argentina.
But with monthly inflation topping 20 per cent, the number of hungry residents has soared. This week, the soup kitchen, which relies on private contributions and volunteer work, had to prepare 30 kg of pasta.
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"There's less and less to give and more and more hunger," said Maria Torres, a volunteer cook with the charity, who is currently unemployed. Today there are around 70 families to feed, up from 20 families a few months ago, she said.
"These people are in a financial situation where if they don't go to a soup kitchen, they don't eat," she added.
Argentina's statistics agency on Wednesday 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.
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December had seen prices double month-over-month following the inauguration of libertarian President Javier Milei, who quickly went for peso devaluation, public subsidy cuts and loosening some price controls, pushing inflation to the highest levels since the country's hyperinflation crisis in the early '90s.
Milei's government sees inflation gradually falling over the coming months, although poverty, which currently tops 40pc, could skyrocket before the economy stabilises.
Economists polled by Reuters in January said they expect inflation to remain high in Argentina throughout the first half of 2024, cooling only toward the second half of the year as a burgeoning recession is likely to slow further increases.
The IMF foresees Argentina's economy shrinking by 2.5pc in 2024.
"It hurts me. I'm ashamed of what we're going through," said Mercedes Insaurralde, another unemployed volunteer at the soup kitchen. "I can go hungry, but the children can't."
