Thanks to Milei, May's inflation dropped to 2.1% and marked a new slowdown

The National Institute of Statistics and Censuses (INDEC) reported that the inflation for May was 2.1%, representing a new deceleration compared to the 2.6% recorded in April.

Thus, thanks to the successful economic plan of the Government of Javier Milei, the consumer price index accumulated an increase of 14.7% so far this year, far from the extremely high inflation inherited from Kirchnerism, which reached levels of 300% at the end of 2023 and the beginning of 2024.

In year-on-year terms, the variation reached 33.2%, within the framework of a downward trend in the rate of price increases. The monthly decrease of 0.5 percentage points compared to the previous month reinforces this process.

When analyzing the dynamics by categories, Seasonal prices led the increases with a rise of 3.5%. This behavior was mainly explained by the increase in vegetables, which was partially offset by a decrease in fruits.

In second place were Regulated prices, which rose 2.4% driven by increases in fuels, electricity, and water. Meanwhile, the Core CPI recorded a rise of 1.9%, remaining below 2%, with increases associated with categories such as restaurants, bars, and food establishments, as well as pharmaceutical products.

The evolution of the Core CPI is a key data point for measuring inflationary inertia, and its drop below the 2% threshold appears as one of the highlights of the report.

At the division level, the largest monthly increase was recorded in Communication, with an increase of 3.4%, while Clothing and Footwear showed the smallest variation, with just a 0.3%.

In parallel, indicators related to the cost of living also reflected moderate increases. The basic food basket rose 2.4% during May, while the total basic basket recorded an increase of 2%.

This data is released in a context where the evolution of prices continues to be one of the main focuses of economic attention, awaiting inflation to fall again below 2%.

With the publication of the May index, INDEC shows the trajectory of inflation in Argentina, with a monthly deceleration and a moderation in its most relevant components.