Consumer prices in Argentina rose 1.9% in July, reports INDEC

Consumer prices rose 1.9 percent in July, Argentina’s INDEC national statistics bureau reported on Wednesday – higher than June’s figure but still under the two percent mark.

In the first seven months of 2025, inflation reached 17.3 percent, well below the 87 percent recorded over the same period last year. The annualised rate (the last 12 months) now stands at 36.6 percent, according to INDEC.

The sharpest monthly increases came in the recreation and culture category (up 4.8 percent) and transport (up 2.8 percent), the latter driven mainly by public transport fare hikes. Clothing and footwear posted the biggest drop, down 0.9 percent. 

By category, seasonal prices rose 4.1 percent, regulated prices 2.3 percent, and core inflation 1.5 percent.

“The three-month moving average of overall inflation was below 1.7 percent, the lowest since November 2017,” the Economy Ministry noted in a statement.

Most analysts had forecast a July figure under two percent, citing progress made by President Javier Milei’s administration in stabilising inflation. 

Milei celebrated the result, noting it was the third consecutive month under the two-percent threshold and praising top official Luis Caputo as “by far the best Minister of Economy in history” in a post on social media.

The Central Bank’s market expectations survey (REM) had projected 1.8 percent inflation for the month. Private estimates suggest July’s currency turbulence had only a limited impact on prices.

June’s 1.6 percent rate was just above May’s 1.5 percent – the lowest in five years. Nevertheless,  inflation has accelerated for two months in a row, even if only slightly.

Since taking office in December 2023, Milei has pursued a severe fiscal adjustment plan involving large spending cuts, mass public-sector lay-offs, the suspension of public works projects, and a drastic cut in the number of government ministries. Last year, his administration celebrated Argentina’s first fiscal surplus since 2010 and an annual inflation rate of 118 percent – down from 211 percent in 2023.

The gains, however, have come at a cost: a steep fall in purchasing power and consumption, alongside rising unemployment. Social unrest has materialised on the streets, with protests being met by an aggressive security apparatus.

– TIMES/AFP/NA