According to the principle of purchasing power parity, the 2001 devaluation of the Argentine peso:

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The principle of purchasing power parity (PPP) suggests that in the long term, exchange rates should adjust to equalize the price of identical goods and services in different countries. When the Argentine peso was devalued in 2001, it meant that the peso had less purchasing power relative to other currencies, such as the US dollar. This devaluation made imports more expensive for Argentina, as it now took more pesos to buy the same amount of goods from abroad, including from the United States. The increased cost of imports can contribute to higher inflation rates within Argentina, as the prices of goods and services rise to reflect the higher import costs.

According to the Principle of Purchasing Power Parity, the 2001