Production costs have surged 25% as higher utility tariffs and reduced output drive up unit expenses, industry group CAME warns. At least 80 large multinational firms have exited the country this year, citing low profitability, high operating costs and restrictions on outbound dividend transfers. President Javier Milei issued decree 534/2025 to veto pension increases, a two-year social security moratorium and a disability emergency law for lack of funding. A private survey from EMEC forecasts 26.8% annual inflation for 2025 and projects the official dollar rate will reach ARS 1,468.69 by year-end after July’s 1.8% price gain. Durable goods, cement and real estate sales are rebounding strongly while supermarkets and wholesalers lag, and food and beverage prices remain steady as industry groups limit pass-through.
