Argentines Buckle Under 103% Inflation

Argentines say that the current 102.5%-and-climbing inflation rate is making it almost impossible to get by. Consumers substitute cheaper products and every trip to the supermarket is a reminder of the country’s inflationary crisis, the worst since 1991 when a period of hyperinflation ended. —reuters.com

Answer the following questions to check your understanding of the story.

What does it mean to have an inflation rate of over 100 percent per year?

An inflation rate of 100 percent per year means that during the last year, ______________.

a) prices of food, shelter, and clothing doubled

b) prices of all goods and services doubled

c) the quantity of goods that people can afford decreased by half

d) the average level of prices doubled

How does Argentina’s inflation rate in 2023 compare with 1991?

a) Argentina experienced hyperinflation in 1991 and in 2023.

b) We can’t make the comparison without more information about consumer substitutions.

c) The inflation rate was higher in 1991.

d) The inflation rate was higher in 2023.

Argentines Buckle Under 103% Inflation

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