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Associated PressSep 15
Argentina's Monthly Inflation Drops to 2.7%
Above: Javier Milei, Argentina's president, delivers the 2025 budget at the National Congress in Buenos Aires, Argentina, on Sept. 15, 2024. Image copyright: Tomas F. Cuesta/Contributor/Bloomberg via Getty Images
The Facts
Argentina's monthly consumer inflation fell from 3.5% in September to 2.7% in October — its lowest level since November 2021. The annual rate also slipped below 200% for the first time since last November, according to data from the Instituto Nacional de Estadística y Censos.
The economy ministry said the figures, published Tuesday, are "consistent with a deepening [of] the disinflation process." Consumer prices in Argentina reportedly rose 107% in the first 10 months of the year and have risen 193% over the past 12 months.
The Spin
Establishment-critical narrative
Despite inheriting an economy ravaged by 211% inflation, Pres. Milei's bold "shock therapy" is bearing fruit in Argentina. His uncompromising focus on balancing budgets and ending money printing has driven inflation down dramatically. While the path has been painful, with necessary recession and spending cuts, the strategy's success is evident in renewed mortgage lending and surprising economic growth.
Pro-establishment narrative
Argentina's economic challenges lie beyond just inflation. These include deep-seated fiscal deficits, repeated debt defaults, and a reliance on currency controls that distort trade and investment, and increase poverty. Milei is addressing these issues by cutting subsidies and public spending, yet these austerity measures risk public backlash and economic contraction. Structural reforms and eventual dollarization are Milei's goals, but they require cautious navigation.