Wholesale inflation fell to 1% in February and marks its lowest level in months

The Domestic Wholesale Price Index (IPIM) registered a monthly increase of just 1.0% in February, explained by an increase of 1.3% in domestic products and a decrease of 2.7% in imported products.

This is a particularly relevant fact, since it reflects a sharp decline in the dynamics of price increases in the phase prior to final consumption, one of the key indicators for anticipating the behavior of general inflation.

With this data, the Government of Javier Milei adds a new positive sign in terms of inflation, thanks to the marked slowdown in wholesale prices during February.

Among local components, the highest positive incidences occurred in “Crude Oil and Gas” (0.27%), “Food and Beverages” (0.26%), “Agricultural Products” (0.24%), “Refined Petroleum Products” (0.23%) and “Electric Energy” (0.12%).

Even so, the overall result remained contained, evidencing a broader slowdown process

.

The report also noted that the Basic Domestic Wholesale Price Index (IPIP) rose 0.7% in the same period, while the Basic Producer Price Index (IPP) registered an identical increase of 0.7%, driven by an increase of 1.0% in primary products and 0.6% in manufactured goods and electricity.

Luis Caputo's message

After learning the data, the Minister of Economy, Luis “Toto” Caputo, highlighted the result and emphasized its relevance within the

stabilization process.

“The Domestic Wholesale Price Index (IPIM) showed a monthly variation of 1% in February, with an increase of 1.3% in domestic products and a decrease of 2.7% in imported products,” he said.

The official also highlighted the year-on-year evolution of the indicator: “The year-on-year variation was 25.6% in the general indicator, 25.9% in domestic products and 21.7% in imported products.” In that regard, he emphasized that this is a significantly lower level than that observed in previous periods

.

One of the highlights of the statement is that “the monthly increase in the IPIM is the lowest since May 2025, when the indicator had registered a decrease of 0.3%”.

In addition, Caputo highlighted that “this is the third time since June 2020 that the IPIM shows a monthly variation of 1% or less”, reinforcing the idea of a sustained slowdown.

In parallel, the Construction Cost Index (ICC) in Greater Buenos Aires registered a monthly increase of 1.9%, with increases of 1.5% in materials, 1.6% in labor and 4.4% in general expenses, while the year-on-year variation reached 24.5%.

The moderation in wholesale prices, together with the decline in imported products, appears to be a key indicator of the consolidation of the disinflation process, in line with the Milei Government's objective of ending this historic problem in the country and laying the foundations for sustained growth.