Why did this happen? Argentina. The pain of the problem together is not caused by the energy crisis caused by the confrontation between Russia and Europe and the United States. Argentina is located in South America, adjacent to Chile, and is rich in marine resources and oil and gas resources. It can be said that its oil and gas can be independent, basically does not need to be imported, and its population is small, about 45 million. So they don't have much problem in energy. Inflation is mainly due to the management style of their local government.
Their population is not particularly large, and they are rich in energy resources, but their basic products are not very good. What is a basic product? It is agricultural industry and related products. Because there are a large number of middle classes, it means that these middle classes basically live on capital. They don't do anything, but they can eat and drink, so many science and technology industries don't do it, so local governments will stimulate the development of basic industries through a lot of subsidies. Because people are iron rice bowls and steel, they are all middle class, and no one is doing basic industries. Is there any way for the society of this country to function normally? Because there are too many subsidies.
The pass-on inflation rate varies from country to country, and it is normal for developed countries to control the pass-on inflation rate within 10%. A little higher in developing countries is understandable, but it is rare for the inflation rate to reach 95%, because it prints too much money and the government doesn't have that much money. How to subsidize? For the relevant practitioners in basic industries, they can only print by printing too much money. The money in the market is worthless and the inflation rate will naturally be high.