Inflation in Buenos Aires slowed to 2.6% in February compared to 3.1% in January, according to a report from the Buenos Aires City Statistics and Census Institute (IDECBA). This result is considered relatively favorable for the government of Javier Milei as it reverses the acceleration trend seen in January and could signal a moderation in the index that INDEC will release in the coming days. Economists, however, note that future developments will depend on key factors such as the pace of tariff adjustments, exchange rate evolution, energy costs, and the behavior of food prices, especially meat. The February data provides a signal of deceleration, but it is still far from a definitive stabilization of the inflationary process, which continues to be one of the main challenges for the Argentine economy. The main impact for the month was concentrated in the 'Housing, water, electricity, gas and other fuels' category, which registered an increase of 5.9%. Meanwhile, fruit prices fell by 2.1%, and vegetables, tubers and legumes fell by 1.1%, helping to moderate the overall rise. The services sector grew at 3%, significantly higher than the 1.9% growth in goods, confirming that the inflationary dynamic is increasingly associated with the services sector. Within food, the main driver was meat and its derivatives, which rose by 7.3%, again becoming one of the main engines of the increase in the cost of the consumer basket. For the first two months of the year, inflation accumulated at 5.7%, while the year-on-year variation reached 32.4%.
Inflation in Buenos Aires Slows in February
Inflation in Buenos Aires slowed to 2.6% in February, a positive signal for the government, though economists warn of ongoing risks. The main price increases were seen in housing and services, while some food prices decreased.
