Argentina inflation falls below 2% for first time in 5 years

In May 2025, Argentina’s inflation rate fell to 1.5%, the first time in five years that it is below 2%. This signifies early successes of President Milei’s reforms, dropping from 2.8% in April and a staggering 25.5% in December 2023.

Despite the encouraging inflation decrease, the annual rate remains high at 43.5%, raising concerns as midterm elections approach. Measures such as floating the peso and tax exemptions for agricultural exporters have been implemented to increase foreign reserves.

The central bank is shifting to a market-determined interest rate framework, moving away from traditional benchmarks set at 29%. This signifies a significant policy change as Argentina seeks to stabilize its economy and strengthen its reserves.