Inflation slows down in Argentina and reaches 2.8% in April

Inflation gives Javier Milei a respite, after having reached its highest value in seven months. The official data known on Wednesday indicate that prices increased 2.8% in April, that is, almost one point less than 3.7% recorded in the previous period. Thus, the accumulated inflation in the first four -month period of 2025 reaches 11.6% and in the last year, 47.3%.

The Ultra Government celebrated as a triumph the price index informed by the National Institute of Statistics and Census (INDEC) and Milei could dispatch with what he likes most: the escarnio to the economists and the journalists who failed their forecasts. The April result was key to the president because it was when he partially lifted exchange restrictions – the so -called CEPO – supported by a credit of the International Monetary Fund for 20,000 million dollars.

“Come on Toto !!!”, Milei celebrated his Minister of Economy, Luis Caputo, with a message on his social networks. “I remind you that several hitmen with microphones and economic said that the inflation rate of the month of April would jump to levels from 5%to 7%… the data: 2.8%. To those who want to have fun, I propose to be proposed to go and armen the file of mandriles,” he added, exultant.

The IPC report released by INDEC details that food and non -alcoholic beverages rose 2.9% “for increases in meats and derivatives, milk, dairy products and eggs, and bread and cereals.” The items with increases above average were restaurants and hotels (4.1%), recreation and culture (4%) and clothing and footwear (3.8%).

Minister Caputo stressed that April, with an year -on -year inflation of 47.3%, was “the twelfth consecutive month of deceleration in the comparison against the same month of the previous year.” For the economy portfolio, “the combination of fiscal surplus, amount of fixed money and free exchange rate will deepen the disinflation process that has been observed since last year.”

Since eliminating the stockpile for natural persons and established a new exchange scheme of flotation administered between bands, the Milei government has been betting strongly to avoid an escalation in the price of the dollar, while pressing the price formators – from supermarkets to automotive – to control the increases. Their measures managed to ride inflation to a level of less than 3%, where it had been parked since last October until the March jump.

At the same time, the government seeks to prevent salary increases that feed demand and put the inflation index at risk. The data informed on Tuesday by INDEC point out that registered salaries, both from the public and private sector, increased 2.5% in March, below inflation of the same month. In the first quarter of the year, prices rose 8.6%, while registered salaries accumulated an increase of 7.6%. While income exceeded inflation during part of last year, they still did not recover the lost with the inflationary and devaluation impact of the late 2023, the Milei presentation letter.