Argentina's August inflation remains persistent, leaving residents struggling to save

Argentina's monthly inflation rate was 4.2 per cent in August, up from last month and beating analysts' forecasts, as Argentines tighten their wallets in a struggle to cope with spiralling costs.

Inflation in the 12 months to August reached 236.7 per cent, still the highest level recorded worldwide, and above a forecast of 235.8 per cent from a Reuters poll.

The analysts had forecasted a modest monthly deceleration to 3.9 per cent, representing an advance for the libertarian President Javier Milei's government, eager to rein in out-of-control prices.

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Statistics agency INDEC said the increase was related to living costs and utilities, education, and transport, for monthly price rises. Since May, the monthly inflation for Argentina has hovered in the vicinity of 4 per cent.

With costs soaring, poverty rates this year reached the highest level in at least 20 years, according to a recent study.

"I swear I don't know how to make ends meet," lamented 63-year-old Liliana Martins, acknowledging that even as she tries to save, it is never enough, according to a report by Reuters.

According to INDEC, one kilogram - 2.2 pounds - of potatoes currently sells for 1,274 pesos ($1.33), almost a 40 per cent increase compared to just one month ago, while prices for meat, dairy, and soaps have also increased.

Agustina Celeste Brito, a 24-year-old teacher, said that she is pooling her salary with that of her parents just to get by. Victoria Godoy, 27, similarly reported that increasing household costs are outpacing her.

"I pay all the utilities, and every month it goes up and the salary I make is not enough," Godoy said.