Overview
- INDEC reported a 2.8% monthly rise in December, the highest since April, bringing the year to 31.5%, the lowest annual rate since 2017.
- President Javier Milei and Economy Minister Luis Caputo credited fiscal surplus, tight money, and Central Bank recapitalization under a floating exchange rate for the disinflation.
- December’s increase extended roughly seven months of gradual acceleration, raising doubts about how easily the disinflation trend can be sustained.
- Transport led December gains at 4%, with housing and utilities around 3.4% and food and beverages showing strong incidence in the overall index.
- INDEC will introduce a new CPI methodology starting with January 2026 data, a change economists say could lift measured inflation and influence the ceiling of the policy-linked exchange-rate band.