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Argentina’s 2025 Inflation Falls to 31.5% as Government Hails INDEC Data

Officials credit a fiscal squeeze, tight money and a floating exchange rate for the disinflation.

Overview

  • INDEC reported a 2.8% monthly rise in December and a 31.5% annual rate for 2025, the lowest since 2017.
  • President Javier Milei publicly praised Economy Minister Luis Caputo, who called the result an extraordinary achievement.
  • Caputo attributed the slowdown to a stabilization program centered on a fiscal surplus, strict control of money supply and BCRA capitalization within a floating FX regime.
  • Analysts noted a caution flag as December accelerated from November, with the biggest monthly increases in Transport (4%), Housing and utilities (3.4%) and Food at around 3%.
  • A private Iaraf study said purchasing power gains were concentrated in AUH beneficiaries (about +67% vs. 2023) while registered private workers, public employees and minimum pensioners saw real declines.