Monthly inflation in Argentina fell below two percent in May for the first time in nearly five years, the national statistics bureau INDEC reported on Thursday.
“Inflation in May was 1.5%, the lowest since May 2020. Excluding the pandemic period, this is the lowest since 2017,” the country’s presidential spokesman Manuel Adorni confirmed on social media on Friday.
According to the country’s statistics and census institute, the consumer price index has risen by 13.3% since the beginning of the year, compared with 43.5% last year. The sharpest rises in May were in telecommunications (+4.1%) and restaurants and hotels (+3%). Food prices rose by 0.5%.
According to Adorni, the decline in inflation was achieved thanks to an economic stabilisation plan that includes reducing budget spending and achieving a surplus.
“Inflation hits the poorest, who have no way to protect themselves from the chaos caused by general price increases. Thanks to lower inflation, 1.7 million children have been lifted out of poverty, according to UNICEF,” he also wrote.
Argentina has been one of the countries with the highest inflation rates in the world for several years. At the end of 2024, price growth stood at 117.8%, while a year earlier inflation reached 211.4%.
In his first speech as head of state in December 2023, Argentine President Javier Milei described the situation as critical and announced the need for shock measures in the economy. The libertarian politician advocates minimal state intervention in the economy and sees the solution to Argentina’s economic problems in eliminating the budget deficit by cutting spending.
