Inflation poses severe challenges for emerging market economies. The latest example is in Peru, where social unrest spreads across the country, forcing the government to impose a curfew in the capital, Lima, on Tuesday, according to Reuters.
“The cabinet has agreed to declare a ban on the mobility of citizens from 2 a.m. through 11:59 p.m. of Tuesday, April 5, to protect the fundamental rights of all people,” Peruvian President Pedro Castillo said in a live broadcast last night.
The South American country was already struggling before commodity prices jumped to record highs because of the Ukraine invasion and virus pandemic supply chain disruptions. Social unrest began last month as demonstrations led by farmers and truckers have intensified over soaring food, fuel, and fertilizer prices.
Days ago, Peru Finance Minister Oscar Graham reduced the consumption tax for fuel and basic food items, hoping it would quell protests.
This all comes as Peru’s annual inflation hit 6.82% in March from a year earlier, the most since August 1998. April’s number is expected to top 7%.
Higher commodity prices, pushing up overall inflation, is metastasizing into a political crisis for Castillo, whose slumping popularity could fall even faster. Castillo has also called in the military to control violent protests.
“This strike isn’t happening just here, it’s all over Peru,” one unnamed protester told Reuters.
Peru's president declared a state of emergency in the capital Lima as violent protests over inflation led to clashes with police, blocked highways and food shortages https://t.co/95yYfgMgFs pic.twitter.com/gwzVCpJyGm
— Bloomberg Quicktake (@Quicktake) April 5, 2022
PERU: The country has declared a state of emergency, mobilized the military to support riot police, and issued several cities a curfew after nationwide protests against inflation, fuel prices and the government spread for a week. pic.twitter.com/W2v18kNDK9
— Apex World News (@apexworldnews) April 5, 2022
Dmonstrators clash with riot police during a partial strike of cargo and passenger carriers in Peru. A partial strike of cargo and passenger carriers caused road blockades and suspension of classes in Peru.#Peru #Clash #Police #Strike #Demonstrator
(Photo by Gian MASKO / AFP) pic.twitter.com/IGIKv5oS50— Bishesh News (@BisheshNews) April 5, 2022
Besides tax cuts, the government has desperately raised the minimum wage by about 10% to about $322 per month.
As the situation worsens in Peru, none of this should be surprising to readers. We’ve explained that social unrest in emerging market economies was inevitable due to the rapidly rising cost of everything.
… and it’s just not Peru that is being impacted by inflationary forces on the continent but every country in South America. The continent is a ticking time bomb for unrest.
We’ve also outlined countries outside South America that could be prone to unrest due to inflation and food shortages.
The Peruvians don’t Fuc around
This communist will be lucky if his ass doesn’t get tied to the back of a pickup truck and dragged through the town , that’s what happens to pedophiles and other criminals that affect the people’s lives there
Sometimes the police have to step in to protect the criminal from the mob
Usually they just look the other way
Because they know they don’t like that criminals shit either
My wife is Peruvian
She’s there right now giving me reports
She’s been without power for over 2 days now charging her phone off a lap top and a car battery
The last asshole didn’t last long either
So they keep trying to install some shitty candidate
This clown barely made it in
Sorta like the stupid Shit we have going on here
Commies
“The cabinet has agreed to declare a ban on the mobility of citizens from 2 a.m. through 11:59 p.m. of Tuesday, April 5, to protect the fundamental rights of all people,” Peruvian President Pedro Castillo said
Well from what I saw
That curfew was ignored
That is the dumbest shit I’ve ever heard
We have to suppress your freedom
To protect your freedom
I doubt he stays in for long
Hope you wife is safe and managing okay down there.
Thanks for this perspective, EOTS. Good to hear the Peruvian people have the fight in them.
.
Thanks Galen
yeah shes a smart cookie .
In the 18 years I’ve known her, and been back and forth to Peru
its amazing to see how those people operate , and what they don’t tolerate
I really hope for them and our family there , that their country gets this clown out
seems like we the people always end up with the stooges in power anymore ..its getting old,, and fast
Last president said he was “stepping down “
The Peruvian people said No fcker
We the people removed you
Same is likely to happen to this chump
Peru is also a Republic