The National Institute of Statistics and Censuses (INDEC) reported this Thursday that May inflation was 1.5%, thus marking the lowest level in five years. With this figure, Javier Milei's government continues to demonstrate the success of its fiscal discipline and monetary stabilization policy, after years of sustained increases in the Consumer Price Index (CPI).
The May figure shows a sharp monthly slowdown, in a process that began after President Milei took office in December 2023, when monthly inflation reached a peak of 25.5% due to the last Kirchnerist government of Alberto Fernández and Cristina Kirchner, which left the country on the brink of hyperinflation.
In year-on-year terms, the variation dropped to 43.5%, representing a sharp slowdown compared to the nearly 300% levels recorded in the first months of the libertarian government.
Since then, the economic team led by Luis "Toto" Caputo has managed to impose a strong fiscal and monetary anchor, which is reflected in the downward trend in price increases.
Private analysts had already anticipated inflation close to or below 2%, but the official number confirms that Argentina is entering a new stage, with stable prices, a controlled exchange rate, and expectations of a strong economic recovery.
