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 just 0.1%, 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%
