Argentina inflation unexpectedly cools in another Milei victory

Argentina’s monthly inflation rose less than expected in November, handing President Javier Milei another victory on voters’ biggest concern a year after taking office.

Consumer prices rose 2.4 percent in November, compared with the 2.8 percent median forecast of economists surveyed by Bloomberg. Annual inflation slowed to 166 percent, according to government data published Wednesday.

In November, Argentina’s public water company serving the greater Buenos Aires area increased rates four percent while the city’s taxi drivers increased fares 50 percent, according to consultancy firm C&T Asesores.

Education, housing and utility costs led price increases, according to government data.

The inflation reading comes a day after Milei’s one-year anniversary in office, which he celebrated with a nationally televised speech. The libertarian economist oversaw a dramatic fall in inflation throughout his first year, from 25.5 percent in December. The government expects annual inflation to fall dramatically to 18 percent in 2025, according to its budget projections.

“We are entering a year of low inflation, high economic growth and as a result, sustained growth in Argentines’ purchasing power,” Milei said Tuesday night.

Last week, Argentina’s Central Bank cut the benchmark rate to 32 percent from 35 percent in line with falling inflation expectations. If inflation continues to cool, Milei last month announced he would slow the monthly pace of currency devaluation that the Central Bank controls, known as the crawling peg, to one percent from two percent.