Additionally, on a year-over-year basis, the IPIM rose by 22.4%, the lowest increase since December 2017
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In a historic event for the Argentine economy, the Wholesale Domestic Price Index (IPIM) recorded a 0.3% monthly decrease in May, marking the first wholesale deflation in almost two decades.
The data was confirmed this Tuesday by INDEC and was quickly celebrated by the Minister of Economy, Luis "Toto" Caputo, as a new milestone in the process of economic stabilization.
The decline was mainly driven by a 4.1% monthly reduction in the prices of imported products, while the prices of domestic products remained stable. On an annual basis, the IPIM rose by 22.4%, the lowest increase since December 2017, consolidating the downward trend of wholesale inflation.
Datos del INDEC.
On his social media, President Javier Milei celebrated the data: "THE BEST IN HISTORY BY FAR. Thank you very much, Luis Caputo, and your entire team for such a task. End," he wrote.
The lowest inflation in 17 years
Caputo highlighted that, excluding the atypical April 2020, when the COVID-19 pandemic caused a sharp drop in demand for goods and an abrupt increase in demand for money, May's decrease represents the only monthly decline in the entire current IPIM series that began in January 2016.
Luis Caputo, ministro de Economía.
To find a comparable figure, one must go back to December 2008, when a 0.3% decrease was also observed, or even to March 2006 (-0.6%) for an even greater contraction. This means that wholesale inflation in May 2025 was the lowest in the past 17 years.
This data adds to May's retail inflation, which was 1.5% monthly, the lowest in over five years, and shows that the slowdown in prices is already beginning to be felt in everyday consumption as well. The consumer price index (CPI) showed a significant drop compared to previous months and reinforces expectations of monthly inflation below 2% in upcoming periods.
Luis Caputo, ministro de Economía.
With this data, Argentina consolidates its shift toward a stable economy after decades of high inflation and macroeconomic imbalances. May's wholesale deflation, unprecedented in almost 20 years, appears as a sign that the change in direction is a complete success.
