The fastest annual increase in the US consumer price index has been observed since 1990, thus the US experienced the inflation peak of the last 31 years. Trying to combat the high inflation rate in their country, Argentines made some suggestions to the Americans that could work in the fight against inflation.
These methods, which Argentines have developed to cope with the 50% inflation rate and shape their daily habits, may perhaps contribute to the Americans’ struggle with the 6.8% inflation rate. Let’s take a look at the dos and don’ts according to the Argentines.
Spend your salary now
In a hyperinflationary economy, the money in the bank is losing value every day. That’s why many Argentine citizens shop for weeks of food, even though they’ll have to wait in the freezer as soon as they receive their paychecks. “Don’t leave your money under the couch, that’s the worst thing you can do,” says Federico Pieri, 30, who works in the sales department in Argentina’s capital city of Buenos Aires.
borrow a lot
If you can afford a sofa, buy it now or don’t hesitate to borrow money. If you can get a loan at a rate below inflation, you can borrow money to cover especially large purchases. Inflation will make it easier to repay the loan in the future. “Get money at very low rates,” said Fernando Iglesias Molli, owner of a coffee shop. “I charge myself to buy the best equipment and create job opportunities,” he said.
Negotiate a salary increase
Any increase in your salary that is less than the inflation rate de facto represents a pay cut. As your purchasing power decreases, your real wage decreases. Argentina’s labor unions and companies are negotiating annual wage increases for workers affected by expected inflation.
Invest in inflation
In an economy dominated by high inflation, there are several good options for savers. Argentines’ favorite savings trick is to convert their earnings to dollars. This is not a method that can be used in the USA, but instead, many citizens in the USA can buy cryptocurrencies.
buy house and car
Another way to counter inflation is to buy real estate and cars, which tend to increase in value over time. “Buy something,” said 29-year-old lawyer Marcos Lalanne. There are things that will hold their value with inflation. ” says.
Lalanne offers one last piece of advice for Americans who are really struggling with rising prices: “Come to Argentina to spend your dollar. You are very rich here. “
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