In an interview, he predicted that by mid-2026 or August, inflation "will surely start with 0." Today, the IPIM recorded a monthly rate of 0.8%, fulfilling the prediction
The rigorous breakdown of the IPIM shows the behavior of its components, where domestic products recorded an increase of 0.8%, while imported products showed a notable containment with an advance of only 0.5% compared to the previous month. Within the local production basket, the categories that exerted upward pressure were:
"Agricultural products": recorded a rise of 3.6%, contributing 0.39 percentage points to the overall index.
"Chemical substances and products": increased their prices by 2.0%, adding 0.19 points to the general indicator.
"Motor vehicles, bodies, and parts": with an advance of 2.7%, contributed 0.17 points.
"Food and beverages": with a positive incidence of 0.16 points.
"Electricity": marked a monthly jump of 5.8% due to the necessary update of regulated tariffs, contributing 0.12 percentage points.
However, these minor increases were brilliantly neutralized by the strength of the private energy sector. The category of "crude oil and gas" experienced a significant monthly drop of 9.2%, subtracting no less than 0.91 percentage points from the index and establishing itself as the great "anchor" deflationary force that stabilized the overall measurement for July.
The president, Javier Milei
For its part, the other key indicators provided by INDEC confirm the phenomenal process of systemic disinflation at the factory exit:
The Internal Basic Prices Index at Wholesale (IPIB), which measures the evolution of wholesale prices excluding the impact of taxes, recorded a monthly increase of only 0.8% and an annual variation of just 30.2%.
The Basic Producer Price Index (IPP), focused exclusively on measuring the price variation of local producers (excluding imports), rose a modest 0.9% in the month. This figure reflects the weight of manufactured products (+1.7%) against the beneficial drop suffered in primary products (-1.0%).
To conclude, the Minister of Economy, Luis Caputo, provided a detailed overview of the accumulated annual variation of the IPIM of 31.1%, evidencing a healthy reordering of relative prices in annual terms:
"Primary Products": annual increase of 38.6%.
"Manufactured Products": annual increase of 29.5%.
"Electricity": annual increase of 45%.
"Imported Products": annual increase of 21.3%.
The time and the rigorous reality of the hard data ultimately proved the President of the Nation right beyond dispute, Javier Milei. During a memorable television interview in the year 2025, wearing his emblematic YPF jumpsuit on the streaming channel Carajo and accompanied by the communicator Daniel “Gordo Dan” Parisini, the president made a prediction that the opposition labeled impossible.
On that occasion, Javier Milei confidently stated that “by the middle of next year or in August, inflation will be at 0 'something'” and predicted that “it will surely start with 0”, a historic goal that is not only being met today but has been achieved ahead of schedule.
The scientific precision of this projection was not a product of chance, but rather a deep understanding of the laws of economics that the libertarian administration applies without hesitation. In that same broadcast, the head of state explained in detail that monetary policy operates with time lags, traditionally estimated between 18 and 24 months.
However, based on a recent doctoral thesis by academic Enrique Neder—a disciple of an economist friend of the house who teaches monetary theory—, Javier Milei demonstrated that in the Argentine case, the lag of monetary issuance is exactly 26 months.
Under this technical premise, he predicted with total conviction: “By mid-2026 or August, inflation will converge to zero point something. I mean, for sure”.
The collapse of wholesale inflation not only fulfilled the presidential prophecy but also shattered the expected timelines, demonstrating the unusual speed of the disintegration of the “kuka risk”.
The titanic task of cleaning up carried out by the Government—focused on eliminating the inherited monetary surplus, sweeping away the disastrous price controls, and dismantling the capital controls—allowed for an earlier convergence.
The miracle occurred a month earlier than expected: in July 2026, wholesale inflation definitively broke the 1% barrier to settle at a spectacular and unprecedented 0.8%, officially starting with the number zero as the President had anticipated.
The president, Javier Milei
According to the official report from the National Institute of Statistics and Censuses (INDEC), the Wholesale Price Index (IPIM) recorded a monthly variation of just 0.8% in July 2026.
This brilliant record matches the figure from the previous month, consolidating a solid step of macroeconomic stability in the wholesale sector and establishing the trend of monthly variations at an extremely low single digit.
With this data, the accumulated inflation for the year so far reaches a meager 16.6%, providing a comfortable fiscal maneuvering margin for the Government to comfortably meet its budgetary goals, while the year-on-year comparison with July 2025 fell back to 31.1%.
The resounding success of free market policies was fervently celebrated on social media. Through his official account on the X platform, President Javier Milei proudly exclaimed: “And in the end, July started with zero... Wholesale inflation = 0.8%. Ciao!”.
In the same vein, the Minister of Economy, Luis Caputo, praised the technical solidity of the stabilization plan by highlighting that “the variation for the month was the lowest since May 2025, and the lowest for a month of July since 2019”. This milestone of 0.8% sharply contrasts with the Consumer Price Index (CPI) or retail inflation, which rose by 2.1% in July.
For analysts in the Buenos Aires financial district, this marked difference is an excellent omen, as wholesale values historically function as a leading indicator of retail shelf behavior, ensuring that the price collapse will soon translate to everyday consumption.
