Argentina’s Inflation Hits 4% in July, the Lowest Mark Under Javier Milei’s Administration

After experiencing a rebound in June, when inflation hit 4.6%, Argentina’s Consumer Price Index (CPI) fell to 4% in July, marking the lowest inflation rate under Javier Milei’s administration and the lowest since January 2022.

The CPI increase of 4% in July brought the year-to-date inflation to 87% and the 12-month inflation rate to 263.4%. This figure matched market expectations, which anticipated a rate between 3.9% and 4%.

The July inflation report showed a return to the downward trend after June’s spike. The largest price increases were seen in “Restaurants and Hotels” at 6.5%, followed by “Alcoholic Beverages and Tobacco” at 6.1%.

The month was also marked by delays in tariff adjustments, which Economy Minister Luis Caputo has been using to control inflation while striving for the 0% target in what he calls the “second phase” of economic policy under the “zero emission” principle.

Additionally, the basic basket of goods increased by 3.1% in July 2024. According to official data from the National Institute of Statistics and Censuses (Indec), a typical family needed 900,648 pesos to avoid poverty.

For July 2024, the Basic Food Basket (CBA) and the Total Basic Basket (CBT) saw monthly increases of 3.1%, accumulating year-to-date increases of 68.6% and 81.7%, respectively. Year-over-year, the variations were 263.4% for the CBA and 261.8% for the CBT.