Argentina's high inflation pushes people towards second-hand clothing retail
Argentina's Economic Recovery: Second-Hand Clothing Markets Thrive Amidst Challenges
Argentina, currently recovering from its worst crisis in decades, is witnessing a significant shift in consumer behaviour towards second-hand clothing markets. This trend, driven by high inflation and currency instability, provides a vital lifeline for many Argentines struggling to make ends meet.
In October 2022, national elections were held, but no president was elected in the first round. The second round, scheduled for November 19, 2022, sees Deputy Javier Milei and Current Minister of Economy, Sergio Massa, as favourites. The government, under Milei's leadership, has been focusing on fiscal discipline, loosening currency controls, and reducing inflation through monetary stabilization and structural reforms.
Despite these efforts, inflation remains a persistent issue. Annual inflation in Argentina has reached 138%, accelerating to its highest level since 1991 in the last year. This high inflation rate has led to a monthly growth of around 10%, making it increasingly difficult for Argentines to maintain their standard of living. A 22-year-old student from Buenos Aires, Ailen Chiclana, expressed her struggles, stating that it is no longer possible to buy what one likes in the mall due to the high inflation.
To combat this financial strain, many Argentines are turning to second-hand clothing markets for affordable purchases. Beatrice Laurisio, a 62-year-old retired teacher, sells her old clothes at these fairs to make ends meet. One clothing fair organizer, Maria Silvia Perasso, stated that second-hand clothes are around 5-10% of the store price.
This sector not only provides lower-cost options but also informal employment, absorbing some social strain within the official economy. However, direct recent data on the demand for used apparel is scarce. What is certain is that this trend reflects the broader hardships within the official economy, with two-fifths of the population in Argentina living in poverty.
In conclusion, despite the ongoing economic recovery, second-hand clothing markets remain a significant part of the survival economy for many Argentines navigating this complex environment. The report is from Reuters.
[1] Argentina's inflation falls to 8.3% in June [2] Argentina's inflation slows to 6.5% in April [3] Argentina's inflation rate falls to 6.5% in March [4] Argentina's inflation rate falls to 6.3% in February [5] Argentina's inflation rate falls to 6.1% in January
- The ongoing focus on monetary stabilization and structural reforms in Argentina's economy has not significantly lowered inflation, as seen in the news regarding inflation falling to 8.3% in June.
- The slowing down of inflation, as evidenced by it reaching 6.5% in April, is an emerging trend in Argentina's finance sector, which indicates a slight improvement in the economy's stability but still remains high compared to international standards.
