The Consumer Confidence Index rose by 1.3% in May following the decrease in inflation.

Consumer confidence recorded an improvement in May, breaking a streak of three consecutive months of decline, in a context marked by the deceleration of inflation and the first signs of recovery in economic activity driven by President Javier Milei's stabilization program.

According to the Consumer Confidence Index (CCI) prepared by the Finance Research Center (CIF) at Torcuato Di Tella University, the indicator rose 1.3% compared to April, reaching 40.14 points.

The survey, conducted by Poliarquía Consultores between May 4 and 19 in 40 major urban centers across the country, showed a widespread improvement in economic sentiment after several months of adjustment and macroeconomic reorganization.

The decline in inflation began to improve expectations

The report attributes the partial recovery of confidence to several factors that are beginning to consolidate in the Argentine economy:

• the deceleration of inflation

• macroeconomic stabilization

• the first signs of recovery in industry and construction

• the improvement of future expectations

Although the index is still below the level of a year ago, this data appears as a positive signal for the national government after months of strong adjustment aimed at correcting inherited imbalances.

Milei managed to stabilize the economy after the initial shock

The study reflects that, after the initial impact of the stabilization measures applied at the beginning of the administration, the economy began to show a change in trend.

Sebastián Auguste, director of the CIF, highlighted that the indicator showed increases in all regions of the country.

“The most pronounced increase was observed in CABA (6.42%), followed by GBA (0.48%) and then by the Interior (0.10%)”, he explained.

The Interior continues to exhibit the highest level of confidence in the country, with 45.39 points, while Greater Buenos Aires maintains the lowest value.

The lowest income sectors showed the greatest improvement

One of the most relevant data points from the report was the recovery of the index among low-income households.

This segment recorded a monthly improvement of 6.86%, while higher-income households showed a slight decline.

This phenomenon appears to be linked to:

• the deceleration of prices

• the updating of social benefits

Despite this, higher-income sectors continue to show better overall levels of confidence.

Personal perception still lags behind

The component related to current conditions advanced only 0.24%, reflecting that many families still do not fully perceive a concrete improvement in their daily situation.

However, the government hopes that macroeconomic stabilization will gradually translate into employment, consumption, and real wages over the coming months.

Future expectations remain the strongest data point

Future expectations increased 1.9% and reached 48.4 points, remaining the most solid component of the index.

This data reflects that a significant part of society continues to trust that the government's economic direction can consolidate a sustained recovery after the inherited crisis.

The balance of Milei's administration

In the first 29 months of Javier Milei's term, the Consumer Confidence Index accumulated an increase of 0.8%, despite the strong fiscal and monetary adjustment applied to organize the economy.

The report also highlights that:

• expectations for purchasing durable goods grew 85.7%

• inflation decelerated sharply compared to 2023

• signs of recovery began to appear in productive sectors

The government seeks to consolidate the change in trend

The May data appears as another sign that Milei's economic program is beginning to generate some improvement in expectations and social mood after months of deep uncertainty.

The combination of:

• lower inflation

• fiscal balance

• recovery of reserves

• financial stabilization

• economic opening

is slowly starting to impact consumer perception, while the government aims to consolidate the rebound in activity during the second half of the year.