Overview

• INDEC reported June inflation at 1.6%, marking a slight rebound from May’s 1.5% low while remaining below the 2% threshold.
• The City of Buenos Aires recorded a 2.1% inflation rate in June, confirming earlier forecasts that national figures would approach but not exceed 2%.
• Increases in regulated tariffs for education, health services and public utilities were the primary drivers of June’s inflation uptick.
• Cumulative inflation reached 15.1% year-to-date through June, with a 39.4% rise over the last 12 months, underscoring an ongoing downward trend.
• The government is highlighting sustained disinflation as a political advantage ahead of October legislative elections, supported by a floating exchange rate regime and an IMF extended fund facility.