The temporary brake on the disinflation process occurred because of a political attack by Kirchnerism in 2025.
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The Minister of Economy, Luis “Toto” Caputo, referred to the latest inflation figure released by INDEC and reaffirmed the objective of the Government of Javier Milei to continue to reduce the rate of price increases in the coming months.
After his return from a tour in the United States aimed at promoting investment in the country, the official also spoke about the political scene and considered that Kirchnerism will lose weight in the future.
The Consumer Price Index (CPI) for February registered an increase of 2.9%, the same value that had been observed during January. With this result, cumulative inflation in the last twelve months reached 33.1%
.
After the data, the Government of Milei confirmed that the slowdown process will continue during the year. Along these lines, the Argentine president projects that the indicator will begin to decline again, with the goal of approaching levels close to zero by August.
Javier Milei and Luis Caputo.
Caputo Caputo's statements
about price developments in a television interview and explained the factors that influenced the February result. “We expected the data. We knew he came in that environment because the rise in meat and the rates hit. It worries us but above all it concerns us. Monetary policy continues to aim at keeping inflation as low as possible,” he said
.
The minister also defended the economic plan implemented by the libertarian administration. “The amount of pesos is very controlled and has been growing below inflation. That ultimately ends up in lower inflation. Homework is still being done: there is no fiscal deficit, there is a corresponding monetary policy and inflation will end up converging at international levels, sooner or later,”
he said.
According to the head of the Treasury Palace, the recent inflationary uptick was influenced by political factors. Caputo stated that there was a “political attack” that generated uncertainty in the markets, in the context of the national legislative elections of
2025.
In addition, after the local elections in the province of Buenos Aires, the minister explained that a “psychosis” was installed linked to the possible defeat of the ruling party in the national elections.
Javier Milei and Luis Caputo.
According to his explanation, this climate caused a greater dollarization of portfolios, which impacted country risk, economic activity and the price index itself. The official noted that this situation represented a setback in the disinflation process
.
However, Caputo insisted that inflation will continue to fall in the coming months. The minister reiterated that it could be below 1% per month by August, although he clarified that the exact time is difficult to specify
.
“It's very difficult to predict when in the indices but I don't worry because it's a matter of time. If it's not August, it'll be September or October,” he remarked
.
Finally, the minister referred to the business climate he perceived during his participation in the Argentina Week event in the United States, where activities were carried out to promote investments in the country.
“The investment climate we saw this week was phenomenal. It's going to translate into investments. The past is behind us. Kirchnerism will end up being a residual party; it's over. Neither the governors nor the people want to go back to the past. So, Argentina has everything to be a power,” he concluded
