Economy Politics Local 2026-01-13T22:32:40+00:00

Argentina's Annual Inflation Hits Lowest Since 2017

In 2025, Argentina ended the year with inflation at 31.5%, the lowest in eight years. Despite a December price rise, Economy Minister Luis Caputo hailed it as progress in disinflation. Analysis of monthly data and the cost of living for families.


Argentina's Annual Inflation Hits Lowest Since 2017

Despite the monthly increase, the year ended with a variation of 31.5%, consolidating it as the lowest annual figure since 2017. According to what Argentina News Agency learned, Minister of Economy Luis Caputo celebrated the results by calling them a solid advance in the disinflation process, highlighting that it was achieved in a context of relative price adjustment. How was the inflation evolution month by month during 2025? The behavior of prices throughout the year showed marked seasonality, with a peak in the first quarter and a strong deceleration towards mid-year: January: 2.2% February: 2.4% March: 3.7% (Highest monthly of the year) April: 2.8% May: 1.5% (Lowest monthly of the year) June: 1.6% July: 1.9% August: 1.9% September: 2.1% October: 2.3% November: 2.5% December: 2.8% How much money did a family need not to be poor in December? Parallel to the CPI, official data on the cost of living showed an increase in poverty and indigence lines above general inflation: Total Basic Basket (TBB): A typical family of four needed $1,308,713.26 to exceed the poverty line, representing a 4.1% increase from the previous month. Food Basic Basket (FBB): That same household required $589,510 to cover its basic nutritional needs and not fall into indigence. Other households: A family of five members had to have $1,376,478 to cover the TBB, while a household of three people needed $1,041,888. Which items and regions drove the index in the last month? The division with the highest increase in December was Transportation (4.0%), followed by Housing, water, electricity, gas and other fuels (3.4%). However, Food and non-alcoholic beverages (3.1%) was the item with the greatest impact in all regions. Geographically, the Northeast registered the highest inflation with 3.4%, while the Northwest and Patagonia presented the lowest variations, both with 2.6%. The Greater Buenos Aires (GBA) area, in turn, aligned with the national average of 2.8%.