Overview
- INDEC reported a 31.5% annual inflation rate for 2025 with December at 2.8%, the lowest year-end level since 2017 despite a slight uptick from November’s 2.5%.
- President Javier Milei and Economy Minister Luis Caputo celebrated the figures, with Caputo calling the result an extraordinary achievement and pledging to maintain the program’s pillars.
- December’s breakdown showed the biggest increases in Transport (4%) and Housing and utilities (3.4%), and analysts noted roughly seven consecutive months of rising monthly CPI.
- INDEC will introduce a revised CPI methodology starting with January 2026 results, which economists warn could lift measured inflation and will feed into exchange-rate band ceilings with a two-month lag.
- A private Iaraf study found uneven real-income outcomes in 2025, with AUH beneficiaries gaining about 67% versus 2023 as many registered private and public workers and pensioners lost purchasing power.