Argentina: Inflation at Four-Year Low

Monthly inflation in November 2024 in Argentina was 2.4%, the lowest since July 2020.

The controversial policies of libertarian President Javier Milei to fight inflation and public debt, which analysts call “radical” and which entailed significant social costs (recall that 50% of the population lives in poverty), have nevertheless produced results. The average monthly inflation rate was 17% in 2022, down to between 3 and 4% in 2023.

November’s 2.4% was sharply below forecasts of 2.8% and down from 2.7% the previous month, while 12-month annualized inflation slowed to 166% from 193%. Annual inflation is still at incredibly high levels, but is down from a peak of around 300% in April and is expected to approach 100% by the end of the year.

According to Argentina’s National Institute of Statistics and Census (INDEC), the largest price increases are for education, rent, services, tobacco, and alcohol, while price increases for food and non-alcoholic beverages are more limited.

Economy Minister Luis Caputo, quoted by Reuters, welcomed the positive inflation data, explaining that Argentina is approaching a point where it will be able to slow its monthly devaluation.