Argentina vs. France: Who's More Inflation-Resistant?

Argentina will face France in the final of the 2022 World Cup, scheduled for Sunday, December 18, 2022, at 10:00 PM WIB at Lusail Stadium, Qatar.

It's difficult to predict who will win. Both Argentina and France have equally impressive track records in the global football tournament.

Argentina has won the World Cup twice, in 1978 and 1986. France has also won twice, in 1998 and 2018.

However, despite their equally strong football teams, Argentina and France have vastly different inflation rates.

Comparison of Inflation in Argentina and France

In November 2022, Argentina experienced an annual inflation rate of 92.4%. This means the average price of consumer goods in the country has almost doubled compared to a year ago.

According to a Reuters report, this inflation has drastically weakened the purchasing power of Argentinians, forcing many to tighten their belts and reduce consumption.

"It's very difficult for me to manage my monthly budget now. My rent is increased every three months," said Natalia Jones, an Argentinian citizen interviewed by Reuters on Friday, December 16, 2022.

Business owners feel the same, including Eduardo Ortega, owner of a vegetable and food store in Argentina.

"People's habits have changed a lot. People used to buy one or two kilograms, but not anymore. Before, people would buy one fruit, now they only get half. So much has changed in the last year," Eduardo told Reuters.

On the other hand, France, Argentina's opponent in the 2022 World Cup final, only experienced an annual inflation rate of 6.2% in November 2022.

According to the economic research firm ING, despite rising energy prices and weakened purchasing power, business conditions in France remained stable until December 2022.

"Stability (in the French economy) can be seen in the services, industry, and construction sectors. Although foreign demand has worsened, the production outlook has slightly improved. Sentiment in the retail sector has also improved," said ING economist Charlotte de Montpellier in a report on the firm's official website on Thursday, December 15, 2022.

"Business sentiment in France remained stable in December and is still above the long-term average. This could indicate that the French economy will recover from the contraction in the fourth quarter of 2022," she continued.

According to a Credit Suisse report, France is one of the countries with the highest number of wealthy individuals in the world, a group that includes the United States, China, Japan, and the United Kingdom.