Inflation in Argentina slowed to 2.7% in October – lowest level in almost three years

Inflation in Argentina slowed to 2.7 percent last month – the lowest monthly rate since November 2021, Report informs via The Buenos Aires Times.

The figure, the lowest of the Javier Milei Presidency to date, means that consumer prices have increased 107 percent in the first 10 months of the year and by 193 percent over the last 12 months, according to official data.

Inflation decelerated from September’s 3.5 percent, reported the INDEC national statistics bureau.

Last month’s figure is a third of the inflation recorded in October 2023 (8.3 percent), and the lowest for the month since 2017.

The news underlines the progress made by President Milei’s administration in the battle against inflation.

However, critics say the deceleration has come at the cost of consumption. Argentina is in a deep recession, with GDP expected to contract 3.5 percent this year. Poverty affects more than half the population, according to government data.

Looking ahead to November, most private consultancy firms predict a rate of between 2.8 percent and 3.2 percent, though government officials are hoping for a further deceleration.

According to the latest Relevamiento de Expectativa de Mercado (REM) survey, published monthly by Argentina’s Central Bank, a slight rebound is expected in December (3.2 percent), followed by a staggered decline: three percent in January, 2.8 percent in February, and 2.8 percent in March.

“The gap [between the official dollar and the parallel dollar] is at a historic low from the last five years; the economy is recovering. There has never been a better moment than this,” declared Economy Minister Luis Caputo in a speech on Tuesday.