There is some good news and some bad news for Argentina's economy as its monthly inflation rate has now gone down to double digits for the first time in 6 months. However, prices remain high, and despite the monthly rate's slowdown, the country's annual inflation rate is still nearing the 300% mark.

This is happening as Argentina President Javier Milei continues his extreme austerity measures which drew much praise from conservative economists but has overall made life a lot tougher for everyday Argentinians who are forced to face increasing prices.

The Argentina Central Bank, which Milei vowed to cut down, announced that it had cut the overnight rate to 40% from 50% previously. This is already the fifth major cut since Milei took over the country last December and started implementing his austerity measures, according to Reuters.

This happened as a new round of rate cuts came as the country posted a monthly consumer price rise increase of around 8.8%. It is still very high but not as high as the peak of over 25% price increase back in December. The increase is also slightly below forecasts of a 9% rise.

As for the annual inflation, it has reached 289.4%. While it is only slightly higher than the annualized rate a month earlier, the amount is still alarmingly high, especially as everyday Argentinians are struggling to make ends meet.

Even with the slowdown in inflation, shopkeepers and consumers are still saying that they are yet to feel it as prices remain high and continue to rise. Businesses have been sorely affected, as business owners are forced not only to raise their prices but the wages of their workers as well, with consumer confidence being quite low in the country.

READ MORE: Viggo Mortensen, Lord of the Rings Actor, Slams Argentina President Javier Milei

Argentina Markets Happy With Prices Going Down, But Costs Are Hitting Average Citizens

International observers are closely monitoring Milei's austerity moves, with the International Monetary Fund (IMF) praising the president while Market watchers are cheering. This means that Milei is planning for the long game as he plans to slowly diminish his country's e

However, Milei's moves, while praised by economists and market observers, are not as well received by normal Argentinians. While Milei continues to tout some good economic news, such as a new loan from the IMF, spending power has gone way down as people are spending less and less.

"People are in pain," 23-year-old Augustin Perez, a supermarket worker in the suburbs of Buenos Aires, told the Associated Press, adding that his electricity bill had nearly tripled since the government slashed subsidies. "They say things are getting better, but how? I don't understand."

New 10,000 Argentina Peso Bill Supposed To Alleviate Spending Woes

With the inflation, Argentinians are forced to bring massive wads and bags full of cash just to make their everyday purchases. The Argentina Central Bank is trying to alleviate this with the release of the 10,000 Argentina Peso Bill.

However, the new 10,000 peso note is worth $11 at the country's official exchange rate and $9 at the black market exchange rate, which means it is not really worth that much, according to ABC News. However, it can ease the number of bills Argentinians would have to take daily, as cash is still king in the country.

READ MORE: Argentina Inflation Is So High That Country Has Introduced a 10,000 Peso Bill, Which Is Only Worth US$11

This article is owned by Latin Post.

Written by: Rick Martin

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