Government milestone: the basic food basket experienced a deflation of 0.4% in May

In a clear sign of the success of President Javier Milei's economic program, the National Institute of Statistics and Censuses (INDEC) reported that the Consumer Price Index (CPI) for May registered an increase of just 1.5%, the lowest monthly value in the last five years. Added to this is an even more relevant fact from a social perspective: the Basic Food Basket (CBA), which determines the threshold of indigence, registered a decrease of 0.4%, an unprecedented phenomenon since the current series began at the agency.

According to the official report, the Total Basic Basket (CBT)—an indicator that defines the poverty line—increased by just0.1%, also the most moderate increase in almost a decade. These figures confirm that, after the initial strong adjustment, the libertarian economic plan is beginning to bear fruit, slowing inflation without resorting to exchange rate lag or artificial price freezes.

"Inflation for the month was the lowest since May 2020. If the extraordinary impact of the pandemic is discounted, it's the lowest since November 2017," the Ministry of Economy highlighted in an official statement.

Deflation in key foods

One of the most striking phenomena of the month was the sharp drop in prices of numerous essential foods, reflecting the readjustment of relative prices and macroeconomic stabilization.

Among the most significant decreases are:

Lettuce: -25.3%

Lemon: -23%

Orange: -10.5%

Round tomato: -8.9%

Potato: -8.1%

Fresh hake fillet: -4.7%

Butternut squash: -4.2%

Sweet potato: -3.5%

Apple: -3%

Canned whole tomato: -2.1%

Onion: -1.8%

Banana: -1.3%

Soaked dried peas: -1.2%

Fine salt and water crackers: -0.9% each

Table wine: -0.5%

Sugar: -0.4%

The "Vegetables, tubers, and legumes" division showed an annual deflation of -9.6%, contrasting with the 43.8% general year-on-year inflation and 34.1% in food. These numbers illustrate that the most sensitive categories for Argentine families have not only stopped rising, but are beginning to experience real decreases.

According to the INDEC report, the values of the basic basket for different types of households were as follows:

Equivalent adult:

CBA: $161,903

CBT: $359,425

Three-member household:

CBA: $398,282

CBT: $884,186

Four-member household:

CBA: $500,281

CBT: $1,110,624

Five-member household:

CBA: $526,185

CBT: $1,168,132

In year-on-year terms, the CBA increased by 29.3% and the CBT by 30.5%, figures that confirm the sharp deceleration compared to previous years. So far in 2025, the CBA has accumulated an increase of 11.3%, and the CBT, 8.4%.

The behavior by CPI divisions showed moderate increases in regulated sectors and significant decreases in seasonal ones:

Communication: +4.1%

Restaurants and hotels: +3.0%

Core CPI: +2.2%

Regulated prices: +1.3%

Seasonal: -2.7%

In particular, fruits and vegetables were key to this decrease: fruits -1.7% and vegetables -9.8%, which marks a strong, albeit transitory, influence on consumer price formation.