Rising poverty grips Argentina as runaway inflation takes its toll

abcnews.go.com:

Homeless shelters in Argentina's capital are seeing demand soar as more people are struggling to make ends meet amid an annual inflation rate above 100% that is pushing more people into poverty

BUENOS AIRES, Argentina — With tired faces, residents of a homeless shelter in Argentina’s capital pass through the main entrance and line up to receive a hot drink and a slice of cake for an afternoon snack.

Places like the Bepo Ghezzi Social Inclusion Center in the Parque Patricios neighborhood of Buenos Aires have seen demand soar as more people are struggling to make ends meet amid an annual inflation rate above 100%.

The portion of Argentines living in poverty reached 40.1% in the first six months of the year, according to figures released Wednesday by the government’s INDEC statistics agency. That is up from 39.2% in the second half of 2022.

“I was renting, and it increased. I couldn’t afford it,” said Lionel Pais, 37, who arrived at the shelter three weeks ago, just after the government devalued the Argentine peso almost 20%, setting off another surge in prices. “These sudden increases that occurred, the economic situation in the country, don’t allow me to cover basic expenses.”

For much of the 20th century, Argentina showed a social mobility dynamic that gave rise to a large middle class and made the country stand out in the region. But the good times derailed, and poverty has remained firmly above 25% the last two decades as the South American country stays mired in economic malaise. Prices soared 124.4% during the 12-month period through Aug. 31.

Sebastián Boned, 26, found himself calling the assistance hotline for people experiencing homelessness when his wages as a hotel receptionist no longer allowed him to cover the