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ARGENTINA

January's inflation was 2.2%, the lowest figure in the last 5 years.

Thanks to President Milei's measures, inflation continues to fall while the economy keeps recovering.

The National Institute of Statistics and Censuses (INDEC) published today the inflation index for the first month of 2025, and the figures are once again surprisingly positive. According to the report, the monthly inflation increase was 2.2%, the lowest figure since July 2020, accumulating an annual variation that plummeted to 84.5%.

This encouraging data, which shows the sustained deceleration of price increases, represents an excellent news for the Argentine economy, which has been suffering from high inflation levels in recent years, particularly under the administration of Alberto Fernández, Cristina Kirchner, and Sergio Massa.

The current data strongly contrasts with the 20.6% recorded in January 2024, during the economic crisis inherited from the Kirchnerist Sergio Massa. At that time, the economy faced strong price increases, and the inflation index marked a record that worried experts and society in general.

Bar chart showing the monthly percentage variations of the consumer price index in Argentina from February 2024 to January 2025, with values ranging from 13.2% in February 2024 to 2.2% in January 2025.
INDEC data. | La Derecha Diario

The difference between both figures shows that the measures implemented in recent months by the Government of Javier Milei continue to bear fruit, generating optimism about the deceleration of inflation in Argentina.

In the first month of the year, there was a 2.2% increase in prices. In January, the division with the highest monthly increase was Restaurants and Hotels (5.3%), while the lowest was Clothing and Footwear, which decreased by 0.7%.

The low inflation not only improves macroeconomic indicators but also reflects in the daily lives of Argentines. With more stable prices in essential products such as food and services, the purchasing power of families continues to recover, providing relief in a context where the cost of living has been a constant concern.

This news also impacts wage expectations and private sector negotiations, as they don't have significant inflationary pressures in the update of prices and tariffs.

The economic measures of Milei, which included a huge reduction in public spending, deregulation of the economy, elimination of the fiscal deficit, and zero emission, were essential for the fall of inflation and to ensure stability that makes economic recovery possible.

Bar chart showing the monthly percentage variations of the consumer price index in Argentina for January 2025, highlighting that
INDEC data. | La Derecha Diario

The implementation of the automatic adjustment formula for retirements and pensions, which adjusts these incomes monthly according to the Consumer Price Index (CPI) calculated by INDEC, will also benefit one of the sectors most affected by Kirchnerist populism.

This measure ensures that retirees and pensioners maintain their purchasing power against inflation, benefiting the most vulnerable sectors of society and reducing the risk of poverty in this group.

With a sustained wage growth and inflation that continues to decline, the purchasing power of workers will continue to increase, and poverty and indigence rates will continue to fall.

The stability achieved by the libertarian government demonstrates that the Argentine economy is in the process of recovery after years of crisis. This achievement of Milei's administration not only improves the quality of life of millions of people but also lays the foundation for a more prosperous and competitive economy, attracting new investments and fostering sustained growth in the country.

➡️ Argentina

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