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Argentina’s 2025 Inflation Drops to 31.5%, Lowest Since 2017

Milei credited the reading to a fiscal‑surplus strategy focused on strict control of money growth.

Overview

  • INDEC reported December CPI rose 2.8%, setting the full‑year rate at 31.5%.
  • President Javier Milei publicly praised Economy Minister Luis Caputo after the release as officials cast the result as proof their stabilization plan is working.
  • Caputo pointed to relative‑price adjustments, a floated exchange rate, fiscal surpluses, tight money and BCRA capitalization as drivers of disinflation.
  • December marked the highest monthly increase since April, with Transport up 4%, Housing and utilities up 3.4% and Communication up 3.3%, while food and beverages carried the greatest weight in the index.
  • The 2026 budget projects 10.1% inflation, a level many private forecasters expect to be higher given recent monthly acceleration.