In late 2023, Argentina's President Javier Milei highlighted the poor state of the peso, advocating for dollarization and closing the Central Bank to combat soaring inflation. Over a year later, while inflation decreased to under 3% per month via orthodox economic measures by Economy Minister Luis Caputo, Argentina remains the most expensive country in Latin America. Prices for everyday goods have surged in dollar comparison, revealing the challenges of keeping inflation in check without implementing drastic monetary changes as initially proposed.
Today, a cup of coffee in a bar in the Argentine capital costs the equivalent of about $3.5, compared to $1.5 in Bogota or $2.5 in Mexico City.
Milei's presidency has seen a reduction in inflation below 3% per month, yet he did not dollarize the economy as initially promised.
Argentina is the most expensive country in the region, with prices for everyday items significantly higher than in neighboring Latin American cities.
The government implemented a strategy that led to a rise in prices when measured in dollars, even as inflation in pesos decreased.
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