Argentina’s inflation rate continued its downward trend in August, with the National Institute of Statistics and Census (INDEC) reporting a 4.2 percent rate, according to its latest monthly report released on Wednesday. This marks a significant decrease from the 25.5 percent rate recorded in December, when President Javier Milei took office and implemented a series of economic reforms aimed at reversing the country’s severe economic difficulties.
The 4.2 percent inflation rate in August was driven by a mix of categories, with clothing and footwear experiencing the lowest increase at 2.1 percent, while housing, utilities, and fuel saw the highest variance at 7.0 percent. This trend is consistent with the overall decrease in inflation rates since Milei’s administration took office, with the rate hovering around four percent in recent months.
Market estimates suggest that Argentina’s total inflation for 2024 will be significantly lower than the 211 percent rate recorded at the end of 2023, with predictions ranging from 122.9 to 123.7 percent. This represents a 90-point decrease, a significant improvement for the country’s economy.
In a related development, the Argentine Integrated Pension System announced that private sector wages have finally caught up with inflation, recovering the purchasing power lost due to the devaluation implemented as part of Milei’s economic reforms.
The release of August’s inflation rates comes ahead of the Argentine government’s presentation of the national budget proposal for 2025, which is expected to be in line with Milei’s “Zero Deficit” fiscal goal. In a break from tradition, Milei will personally present the budget proposal to Congress, marking a first for an Argentine president.
Milei confirmed the announcement, stating that he will present the budget on September 15 and inviting the public to witness a “historic milestone” in Argentine economic history. He has previously expressed his intention to use the budget to explain the foundation of the zero deficit and end the country’s fiscal deficit, which he has described as a “cancer” that has plagued Argentina’s economy.
