Poverty levels in Argentina have reached 57.4% in January, according to a report by the Catholic University of Argentina (UCA) cited by local media on Sunday. This is the highest poverty level in the country in at least 20 years.
The report attributes the increase in poverty levels to the devaluation of the peso currency carried out by President Javier Milei shortly after his inauguration in early December, and the resulting price hikes. The poverty rate closed the year at 49.5%.
“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 had promised to “dollarize” the economy, address the annual inflation rate of more than 200%, eliminate the fiscal deficit, and end benefits for Argentina’s political dynasties, which Milei refers to as “the caste.”
In December, his government implemented sweeping economic reforms, including a 54% peso devaluation against the U.S. dollar, causing a significant drop in the incomes of Argentines as prices skyrocketed.
Other measures included reducing energy and transportation subsidies, as well as implementing tax hikes in an effort to achieve fiscal balance.
On Friday, Argentina’s economy ministry reported a January budget surplus of 518.41 billion pesos ($620.85 million), marking 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, and UCA did not respond to a request for comment.
($1 = 835.00 Argentine pesos)
Reporting by Eliana Raszewski in Buenos Aires; Writing by Kylie Madry; Editing by Matthew Lewis
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