In September, inflation in Argentina was 3.5 percent, showing a slight decrease compared to previous months. In October, the annual inflation rate was 193 percent, a significant reduction compared to the 209 percent reported in September. This data was released by the National Institute of Statistics and Censuses (Indec).
The economist and political figure Javier Milei has highlighted the drop in prices in recent months as a victory in his fight against the economic crisis that has affected Argentina for more than two decades. The Government had committed to bringing inflation below 3 percent before the end of the year, a goal that has finally been achieved after several months of efforts.
When Milei took office in December last year, monthly inflation soared to 25 percent, creating daily difficulties for the population while the government implemented radical economic reforms, including the elimination of energy subsidies. However, exchange rate stability and fiscal and monetary adjustment measures have contributed to the moderation of prices in recent months.
According to experts, the 'zero issuance' monetary policy implemented by the Government has been a key factor in the deceleration of inflation, along with stability in the exchange rate. The accumulated inflation in the first ten months of the year has been 107 percent, showing a downward trend in recent months.
Argentina's Economy Minister, Luis Caputo, has celebrated this decrease in inflation as a victory for Milei's government, highlighting that solid foundations are being laid for the country’s economic recovery. This downward trend is expected to continue in the coming months, with projections placing annual inflation around 120 percent by the end of the year.
For next year, the Government has proposed a budget guideline with an inflation rate of 18.3 percent, although private consultants estimate that the figure could be higher. Milei has emphasized the importance of continuing to reduce exchange restrictions to boost the country's economy, underscoring the need to improve monetary and fiscal conditions to consolidate long-term economic recovery.
