As Argentina's new President Milai gradually began to relax the currency and price controls implemented by the previous government, Argentina's inflation rate soared to the highest level in more than three decades in the last month of 2023 like a "runaway wild horse".Data released by the Argentine government on Thursday showed that the consumer price index soared to 211.4% year-on-year in December, and the month-on-month increase was as high as 25.5%. This has enabled Argentina to surpass Venezuela and become the country with the most severe price control in Latin America.

However, the increase in month-on-month data for that month was slightly lower than the market's earlier expectations. Industry surveys once expected the increase to exceed 30%.

Since taking office on December 10, Milai has pushed for a 54% devaluation of the Argentine peso and reversed policies implemented by his former Economy Minister Sergio Massa to remove price controls on hundreds of daily consumer goods. Massa ran against him for the presidency in last year's election.

Overall, in December, Argentina’s domestic food and beverage prices increased the most, followed by clothing and housing.

Faced with skyrocketing prices, many Argentinian people have complained endlessly. Susana Barrio, a 79-year-old retired Argentinian worker, said, "We have to cancel leisure and entertainment activities that can make life better." She can no longer afford to invite her friends to the barbecue parties that have always been an important part of Argentinian social life.

High inflation has plagued Argentina for years, and price increases are now at their highest levels since the early 1990s, when the country emerged from a period of hyperinflation.

Milley had been a political outsider before this year's election, winning the presidency in large part because of voters angered by the worsening economic situation under previous governments. Milley, who has only been in office for a month, is seeking to use "shock therapy", a tough austerity measure to reduce inflation, reduce the huge fiscal deficit and rebuild government finances. But Milley also warned that this will take time.

In a new interview on Thursday, Milley also reiterated that he will fulfill one of his most controversial campaign promises: closing Argentina's central bank. When Milley was asked if he still planned to dollarize the economy, he said "sooner or later" the 86-year-old institution would be closed.

There are currently only about a dozen countries in the world without a central bank. The list includes Panama, Kiribati, Tuvalu, Micronesia, Andorra, the Marshall Islands, Monaco, Nauru and Palau. Most of these countries have small populations and some are also considered tax havens.

It is worth mentioning thatIn Latin America, Venezuela has long been a typical negative example of an economy that has fallen into long-term hyperinflation. However, Argentina now seems to have "taken its place." Venezuela's inflation rate fell to 193% last month, according to industry data. Consulting firm Ecoanalitica predicts that the country's inflation will approach 170%, while Argentina's inflation growth is likely to remain at a high of over 200% in January this year.