Inflation collapses and the 'party of the State' does too

For years they repeated to us that inflation was a "multicausal" phenomenon. An evil that had to be managed. That lie—useful to political power—was the perfect alibi to erode wages, destroy savings, and multiply the number of poor people while the State grew without restraint. Today that alibi has collapsed.

The 31.5% inflation in 2025 was not only the lowest figure in eight years. It was something much deeper—and therefore intolerable for Kirchnerism: it proved that inflation was not inevitable, but deliberate. That it was not necessary to control prices, squeeze companies, or deploy activists in supermarket aisles. That the narrative of "multicausality" was merely an alibi to print money without limit. And, above all, that political power could stop stealing through inflation, but did not do it because it did not want to.

Between 2023 and 2025, annual inflation fell from 211% to 31.5%. That is almost 180 points less in just two years. It is not luck. It is not the international context. It is cause and effect. And that drop explains something that professional politics prefers not to look at: poverty fell from the Kirchnerist peak of 57% to 27%. Thirty points less. Thirteen million people who stopped being poor. No new welfare programs. No narrative. No epic. Just stability.

Here is the core of the problem. For years, Kirchnerism claimed to fight inflation with price controls managed by unions, "La Cámpora" and social organizations. A grotesque experiment: bureaucrats deciding how much things are worth while the printing press kept running at full speed. The result was always the same: shortages, a black market, and more inflation. But they never took responsibility. Inflation, they said, was "multicausal".

It is not. It never was.

As Milei repeats to exhaustion, inflation is always and everywhere a monetary phenomenon. It is an excess supply of money. It happens either because too much is printed, because the demand for pesos falls, or because both things occur at the same time. When the State floods the economy with printed paper, money loses purchasing power and prices rise. It is that simple.

The historical numbers are devastating and do not admit debate. Néstor and Cristina multiplied by ten the inflation they inherited: from 2.6% to 27%. Macri, despite his gradualist rhetoric, doubled it: from 27% to 54%. Alberto Fernández quadrupled it: from 54% to 211%. And Milei did what nobody wanted—or dared—to do: he reduced it sevenfold in two years.

This fact is pure dynamite for the political system that governed for decades. Because it proves that inflation was not inevitable. It was functional. It served to finance an elephantine State, to sustain networks of political dependency, and to hide the plunder behind the smoke of prices. Inflation was not a mistake: it was a tool of power.

This is why the reaction is so violent. Because Milei is not managing the problem. He is going to the root. Because it is not only about lowering an index: it is about exterminating forever the inflationary cancer that destroyed entire generations. With no money printing. With no deficit. With no excuses.

Argentina is discovering something uncomfortable for many: when the State stops stealing through inflation, poverty falls. When money stops being a fraud, wages regain their value. When the local Keynesian dogma is broken, reality improves.

That is the real reason for the hatred. Not the style. Not the language. Not the manners. The problem is that, for the first time in decades, someone is proving that the State pays for the adjustment when it stops printing money.

Inflation is not negotiable. It is not "coordinated". It is not managed. It is eliminated. And that is exactly what is happening.