Argentina

Argentina's Monthly Inflation Falls to 1.5%, Lowest Pace in Five Years

Published JUN 13 2025

Story

Above: Argentine President Javier Milei addresses the Madrid Economic Forum 2025 on June 8, 2025. Image credit: Diego Radames/Anadolu/Getty Images

The Facts

Argentina's National Institute of Statistics and Census (Indec) said on Thursday that its consumer-price index rose 1.5% in May, down from 2.8% in the previous month, marking the lowest month-on-month reading since the pandemic month of May 2020.
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Mercopress
Communications saw the highest increase in prices, at 4.0%, while food and non-alcoholic beverages were among those that recorded variations well below the average, at 0.5%, as essential products added to the Food Basic Basket recorded a 0.4% deflation.
Buenos Aires Times
La Derecha Diario
Core inflation, an indicator that removes volatile categories, was slightly higher last month, at 2.2%, with regulated prices soaring by 1.3% and seasonal prices decreasing 2.7%.
Buenos Aires Times
Reuters
Argentina's inflation remains among the world's highest rates, but the year-on-year consumer price rate dropped to 43.5% from 47.3% in April — and from a peak of 289.4% in the first months of President Javier Milei in office. In 2025, the index totals 13.3% and is estimated to reach 28.6% by the end of the year.
Bloomberg.com
Mercopress
Reuters
Efforts to bring Argentina's years-long price instability to an end have been a top priority for the libertarian leader, especially ahead of midterm elections in October where the economy will be a key battlefield to secure congressional seats.
Bloomberg.com
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Earlier this week, Argentina sealed a $2 billion repurchase agreement with seven international banks and announced measures to increase its hard-currency reserves, now that the government has scrapped a fixed exchange rate that prevented the central bank from building them up.
Bloomberg.com
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Sources Split

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The Spin

Right narrative

This nosedive in inflation is a remarkable win for Milei, as his ambitious austerity measures and bold economic reforms have kicked off a process to tackle the country's spiraling prices even amid severe economic turmoil. Forget about magical politicians, economic common sense is the actual solution.

Reason Magazine

Left narrative

Argentina has little to celebrate as inflation has been slowing at a devastating social cost. With wages frozen and the purchasing power of families destroyed, most households cannot afford the basic food basket and an overwhelming majority of the country's population relies on credit or assistance to buy groceries.