LOW INFLATION

Inflation fell to 2.6% in February after the instability caused by Kirchnerism

Inflation fell to 2.6% in February after the instability caused by Kirchnerism
Inflation in the City was 2.6% and confirms the end of the inflationary process after the political crisis
porEditorial Team
Argentina

The rise in prices slowed down again in Buenos Aires and consolidates economic normalization after last year's political instability caused by Kirchnerism and its allies.


Inflation in Buenos Aires was 2.6% in February, according to the Buenos Aires Institute of Statistics and Censuses.

The figure marked a slowdown compared to 3.1% recorded in January and consolidated a moderating trend in price dynamics.

With this result, the price index has accumulated 5.7% so far in 2026 and 32.4% in the last twelve months.

The evolution confirms, according to economic analysts, the closure of the inflationary process that had intensified during the period of political and economic instability recorded at the end of 2025.

The economy normalizes after political turmoil

During the last months of last year, inflation had shown additional pressures linked to political uncertainty and relative price adjustments

.

However, recent data shows that this process is beginning to dissipate.

President Javier Milei recently assured that inflation will continue to fall throughout the year.

According to the president, after the first quarter, prices will resume a sharper downward path and between June and August the monthly index could start “with a zero ahead”, referring to rates below 1%.

Image 1371042
Image 1371042

Housing and services led the increases The Buenos Aires statistical institute report indicated that February's inflationary dynamics were

mainly driven by five categories:

  • housing, water, electricity, gas and fuel insurance and financial services food and

  • non-alcoholic beverages

  • health

  • equipment and

  • home maintenance The Housing, Water, Electricity, Gas and

Fuel category registered the largest increase, with a Increase by 5.9%

.

The increase was related to expenses, rents and rate updates for electricity and gas.

Meanwhile, insurance and financial services rose 5% during the month.

Food increased above average

The Food and Non-Alcoholic Beverages category registered an average increase

of 2.9%.

Within that segment, the main impetus came from meat and meat products, which rose 7.3%.

There were also increases in:

  • bread and cereals (1.9%)

  • milk and dairy products (1.8%)

.

In contrast, some foods showed declines that helped moderate inflation in the sector:

  • fruits (-2.1%) vegetables and legumes (-1.1%)

  • Health and

household equipment also rose. The health sector registered an increase of

3%, mainly driven by increases in prepaid medicine fees

.

On the other hand, household equipment and maintenance increased 3.1%.

The Restaurants and Hotels sector rose 1.5%, mainly due to the increase in food prices in bars and restaurants.

Image 1371043
Image 1371043

Some sectors helped moderate inflation

.

Not all items registered increases during February.

The report indicated that:

  • Transportation fell 0.4%

  • Clothing and footwear remained unchanged Recreation and

  • culture rose just 0.1%

.

In addition, the prices of airfares, hotels and tourist packages showed seasonal declines

that helped to moderate inflation.

Goods and services: different dynamics

The report also analyzed the behavior of goods and

services.

During February:

  1. Goods: up 1.9%

  2. Services: up 3%

The biggest increase in services was explained by expenses, electricity and gas rates, rents and gastronomic

services.

In the first two months of the year:

  • goods accounted for 4.3%

  • and
  • services totaled 6.6%

  • .
  • In year-on-year terms, goods increased 26.3% and

services 36.1%.

Core inflation remains stable

The indicator that approximates core inflation, called “IPCBA Rest”, registered an increase of 3.1% in

February.

In year-on-year terms, it stood at 32.9%, reflecting a significant slowdown compared to the inflation levels registered by the Argentine economy in previous years.

Regulated prices, which include fares and public transport, rose 4.5%, while seasonal prices showed a 6.5% drop, mainly due to the decline in airfares and tourism.

A declining inflation scenario The recent evolution of prices in

the city anticipates what could be reflected in the national index that will be released by the National Institute of Statistics and Censuses in the

coming days.

Private analysts estimate that domestic inflation in February will be at levels similar to the 2.9% recorded in January.

If the trend consolidates, economists expect the country to enter an increasingly moderate phase of inflation, following the period of economic and political tensions at the end of 2025.


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