Empanada-Zoff: Milei confronts in it because of high prices!

Empanada-Zoff: Milei confronts in it because of high prices!

In Argentina, a public dispute over the high food prices has attracted President Javier Milei and Minister of Economics Luis Caputo. The reason for the argument was the actor Ricardo's statement in it, who reported that he paid 48,000 pesos ($ 42) for a dozen gourmet empanadas. This criticism met with resistance from the government, since it had acquired a "gourmet version" of the Empanadas and thus questioned Milei's tax policy, which aims to stimulate the dollar expenditure. It defended his statements and insisted that the prices were indeed exaggerated, while Milei published a AI-generated picture of it with a golden Empanada in a jewelry box to invalidate his criticism.

The prices for Empanadas vary greatly in Buenos Aires, between 16,000 pesos ($ 14) for simple variants and up to 47,900 pesos for premium versions. The average price for a dozen empanadas is around 22,000 pesos. This discussion reflects the larger problem, since the inflation rate in Argentina could be significantly reduced after Mileis took office. Inflation fell from 211.4 percent in 2023 to 117.8 percent in 2024, which gave the country one of the highest inflation rates worldwide.

radical economic policy and their consequences

Since taking office in December 2023, Mile has followed a radical austerity course, which, among other things, resulted in drastic cuts in the state budget. He justified these measures with an empty state treasury and the need to combat hyperinflation. Various reforms that led to the lowering of inflation included the reduction of the ministries and the discharge of numerous civil servants. Social programs such as state subsidies for local transport and medication for seniors were also discontinued.

Despite the sunken inflation, the measures also have negative consequences. The poverty rate rose to over 50 percent in the first half of 2024, and the number of jobs decreases because small shops and factories have to close due to the low private demand. Protests, especially pensioners, have increased in Buenos Aires because the population no longer wants to accept the drastic reforms and the increasing living costs.

The role of the upcoming elections

The upcoming intermediate elections in October 2025 throw a shadow on milis reformatory efforts. Investors and the public observe exactly how voters will react to Mileis Economic Policy, which has produced both successes and failures. Despite the reduction in the monthly price increase rate from 25.5 percent to 2.8 percent, prices for basic foods, such as the Empanadas, have increased significantly in recent months, which increases the higher living costs.

Overall, Argentina stands on a crossroads. The reforms initiated by Milei are taken into account exactly from appreciation or rejection, while the population is faced with the real consequences of its politics.