BUENOS AIRES, Argentina (AP) — With tired faces, residents of a homeless shelter in Argentina’s capital pass through the main entrance and line up to receive a hot drink and a slice of cake for an afternoon snack.

Places like the Bepo Ghezzi Social Inclusion Center in the Parque Patricios neighborhood of Buenos Aires have seen demand soar as more people are struggling to make ends meet amid an annual inflation rate above 100%.

The portion of Argentines living in poverty reached 40.1% in the first six months of the year, according to figures released Wednesday by the government’s INDEC statistics agency. That is up from 39.2% in the second half of 2022.

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