Last week’s Argentine inflation figures were released. The interannual Consumer Price Index, or CPI, reached 78.5% and set new records. This makes Argentina second to Venezuela in Latam when it comes to high inflation. In August prices rose by almost 8%, which impacted the pockets and savings of Argentines. AAccording to Bitso’s survey, these are the results.Argentines are now exploring cryptocurrencies to maintain their purchasing power with stablecoins.
Argentine inflation continues to grow, expected to reach 100% this year
Some countries in Latam are facing inflation as a problem due to the economic crisis. Argentina is one of the largest economies of the region and its inflation levels are now affecting citizens’ pockets. The most recent CPI report revealed that prices rose by 7% MoM (month-over-month), with these numbers being second only to Venezuela’s inflation, which has reached well over 100% YoY (year-over-year).
Prices for food and drinks rose 7.1% in August. Other items, such as clothing and appliances, saw a more dramatic increase. The country has had three economic ministers within three months, making the accumulated inflation number 78.5%. The Argentine peso is one of the fiat currencies that has suffered the most in Latam, losing more than 25% against the dollar when considering the official rate, and almost 50% of its value taking the unofficial “blue” exchange rates as reference.
Crypto thrives in Emerging Markets
The economy of Argentina is in poor shape, which has led its citizens to look for other ways to protect their purchasing power from inflation. They have also begun to research stablecoins and cryptocurrencies to help them even with the negative trend in cryptocurrency prices. Chainalysis reports that Argentina is not among the 10 top countries where cryptocurrency adoption has increased, but local research confirms this.
Bitso, an exchange for cryptocurrency based in Mexico, conducted a survey that revealed there was a lot of knowledge about cryptocurrency assets in Argentina. Nearly 34% of the respondents had specific knowledge on cryptocurrency. 83% knew about it.
Out of 83% of those who are aware of cryptocurrency, 10 percent already have or have crypto assets in their portfolios, and almost 23% would like to acquire them. This is why crypto investors want to be able to use the currency as they would fiat currencies and keep their savings intact even when inflation increases.
Let us know your thoughts on the latest inflation statistics in Argentina, and about crypto. Leave a comment below.
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