Overview

• Argentina's monthly inflation fell to 2.2% in January 2025, the lowest in nearly five years, as part of a government-led stabilization plan anchored in fiscal, monetary, and exchange rate policies.
• The administration plans to further reduce inflation to below 1% monthly by October 2025, with economic measures closely tied to the upcoming legislative elections.
• Despite official data showing three consecutive months of industrial improvement, private studies highlight a recent 2.3% production decline in March, raising concerns about sustained recovery.
• Retail sectors, including supermarkets and clothing, continue to report double-digit year-on-year sales declines, reflecting weakened consumer demand across the economy.
• Austerity measures, subsidy cuts, and wage caps have exacerbated socio-economic pressures, with poverty rates exceeding 50% and real wages struggling to recover from past inflation surges.