Feeling the pinch? Argentina shows how bad inflation gets

Inflation rises in the UK may be troubling, but I saw for myself how the Argentinians still managed to enjoy life while in thrall to triple-digit rises (Gary Nunn) With each new headline, it can feel like we’re falling further into a quagmire of doom and this week has been no exception.

- GARY NUNN

UK inflation rose in March to 3.3 per cent (up from February’s 3 per cent) because of the Iran war. Experts warn that April may be even worse and it means bills will rise yet again. It’s certainly not good news. But before completely catastrophising, it’s worth taking a step back. What I can offer is some perspective found in an unlikely place: Argentina. Between 2023 and 2025, I lived in Buenos Aires. As I marked my first anniversary there in October 2024, the city was gearing up for its huge annual Pride parade.

There was dancing in the streets (for Pride, rather than for me). A woman spun me into a merengue-style dance, as gloriously decorated floats pumped reggaeton music from massive speakers. As they coasted past grandiose buildings, it felt like Earth’s most abundant country.

It certainly was not. But locals may have been celebrating a welcome dip in inflation that month: it had dropped to 193 per cent, Argentina’s lowest rate in almost a year. In 2023, inflation there peaked at 211 per cent: the world’s highest. You read that correctly, it was 64 times the size of the UK’s current inflation.