Argentina exits recession in win for libertarian president Milei
CNNDEC 21 2024
Argentina's Monthly Inflation Hits Lowest Rate Since Mid-2020
Above: A shop window displaying prices in Argentine pesos in Buenos Aires on Feb. 13, 2025. Image copyright: Luis Robayo/AFP via Getty Images
The Facts
Argentina's National Institute of Statistics and Census (INDEC) reported on Thursday that month-on-month inflation slowed to 2.2% in January, the lowest rate since July 2020 and the fourth straight month below 3%.
Restaurants and hotels saw the highest price increases in January (5.3%), followed by housing and utilities (4%) and food and non-alcoholic beverages (1.8%). Meanwhile, education (0.5%) and clothing and footwear prices (0.7%) had the lowest variations.
The annual inflation rate is now at 84.5% — below 100% for the first time since January 2023. The index was at 117.8% at the end of last year, after peaking near 300% earlier in 2024.
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.
Left narrative
Economic management has indeed improved since Milei took office, but that isn't much of a compliment given that the previous administration was a complete disaster. While it's certain that prices are now rising at a slower pace, this success comes at the expense of lower economic activity and a high poverty rate.