![(FILE) - A view of several Argentine peso banknotes on Jan. 15, 2019 in Buenos Aires, Argentina. Jan. 16, 2020. EFE/Juan Ignacio Roncoroni[FILE CHRONICLE: ARGENTINA INFLATION]](https://i0.wp.com/efe.noticiasdopara.net/wp-content/s/2025/05/rss-efe90614eef39b38fc4306f1a88cac4bba011a6ff9fw.webp?fit=1920%2C1280&ssl=1)
By Natalia Kidd
Buenos Aires, (EFE).- Argentina’s annual inflation slowed to 47.3% in Apr. 2025, its lowest year-on-year increase since May 2021, according to data released Wednesday by the National Institute of Statistics and Censuses (INDEC). This marks the twelfth consecutive month of deceleration.
Every month, inflation also cooled, rising just 2.8% compared to March’s 3.7%. Goods increased by 2.7%, while services saw a 3% hike. In annual , goods rose 37%, and services jumped 76.1%.
The drop in inflation comes as President Javier Milei’s government implements a new phase of its economic stabilization plan.
Following a sharp devaluation of the peso in December 2023 and the introduction of ultraliberal measures, consumer demand plunged and inflation began to ease in mid-2024.
However, March saw a temporary spike in monthly inflation, attributed to seasonal factors and fears of another currency adjustment.
“The result was an overestimation of the official exchange rate, which was cautiously ed on to prices,” explained economist Julián Orué of the Fundación Libertad y Progreso.
On April 14, the government unveiled a managed floating exchange rate system within bands, following a new agreement with the International Monetary Fund (IMF).
The peso depreciated by 10% at the launch, prompting concerns about renewed inflationary pressure.
However, Argentina’s central bank then intervened to gradually strengthen the currency and build up reserves, which helped maintain inflation under control.
“This policy move prevented another surge in prices,” said Orué.
Argentina’s Ministry of Economy stated on Wednesday that “the combination of fiscal surplus, fixed money supply, and a free-floating exchange rate will deepen the disinflation process, already underway.”
Orué added that “beyond the positive 2.8% monthly figure, the real news is the trend: current peso valuations suggest that disinflation may continue in May, possibly reaching around 2%.”
Inflation for the first four months of 2025 totaled 11.6% with a year-to-date increase of 117.8%, well below the 211.4% ed in 2023.
Private forecasts compiled by the Central Bank predict annual inflation of 31.8%, with monthly rates of 2.8% in May and 2.2% in June. EFE
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