Price slowdown: March wholesale inflation closed at 1.5%

INDEC published the report corresponding to the Wholesale Price Index System for March 2025, confirming a marked slowdown in inflation in the Argentine economy, in line with the objectives of Javier Milei's government.

In monthly terms, the Wholesale Domestic Price Index (IPIM) recorded a variation of 1.5%, the Basic Wholesale Domestic Price Index (IPIB) 1.4%, and the Producer Basic Price Index (IPP) 1.3%. These are the lowest figures since the inflationary peak caused by Massa in December 2023, when monthly records exceeded 54%.

This figure becomes relevant in the context of the libertarian economic program, based on public spending adjustment, elimination of the primary fiscal deficit, and strict monetary restriction. The combination of these measures has managed to contain the inertial and monetary components of inflation.

In year-on-year terms, IPIM stood at 27.7%, IPIB at 25.7%, and IPP at 28.1%. This implies a significant slowdown compared to the records from three months ago, which exceeded 100% annually. In particular, the prices of domestic products varied by 30.6% year-on-year in IPIM, while imported products did so by just 18.2%, reflecting the effect of the exchange rate anchor and the normalization of foreign trade.

Sectors with moderate increases and correction of relative prices

Among the sectors, moderate increases stand out in food and beverages (2.7%), textile products (1.9%), and electric power (1.7%). Meanwhile, declines are observed in fishery products (-2.3%) and medical equipment and measuring instruments (-0.5%). These sectoral movements respond, in part, to the recomposition of relative prices after years of distortions and controls.

The manufactured products component showed a monthly variation of 1.6% in IPIM, IPIB, and IPP, evidencing homogeneity in the deceleration process at the industrial level. The increase in refined petroleum products (2.6%) and in printing and recording (3.3%) contrasts with the stability in other areas such as leather and footwear (0.3%) and electrical machinery (-0.5%).

The report also includes a graphical analysis showing the sharp monthly slowdown since the peak recorded between December 2023 and January 2024. Since then, the three indices have been converging to levels close to 1%, a direct result of the contractionary monetary policy implemented by the Central Bank and the elimination of monetary financing to the Treasury.

Construction sector indicators: moderate slowdown and price readjustment

In line with the slowdown in wholesale prices, the construction cost index in Greater Buenos Aires, also published by INDEC for March 2025, shows a monthly variation of 0.3%, consolidating the trend of inflationary slowdown driven by the government's economic plan.

Breaking it down by components, materials increased by 0.6%, labor fell slightly by 0.1%, and general expenses rose by 0.8%. In year-on-year terms, the accumulated increase was 49.3%, with a rise of 3.6% so far this year. This combination shows significant containment compared to previous months.

The most notable increases within materials were in floors and carpets (2.7%) and glass (2.5%), while there were decreases in metal products (-1.8%) and cement and lime (-1.3%). Meanwhile, the equipment rental services sector showed moderate increases, with the backhoe loader (3.1%) and the dump truck (3.0%) leading the way.

This data reflects not only the slowdown in the inflation rate, but also an incipient correction of relative prices within the sector, consistent with the general diagnosis of the Argentine economy. As is the case with wholesale prices, construction costs show signs of stabilization and a gradual readjustment of their components, driven by the fiscal and monetary discipline policy of the current government.