Argentina records lowest year-end inflation since 2017

January 14, 2026 / 1:14 PM

People buy groceries at a supermarket in Buenos Aires,

Sharjah24 - AFP: Argentina’s inflation continued to rise on a monthly basis in December, yet the country closed 2025 with its lowest annual inflation rate in eight years, according to data released Tuesday by the national statistics agency INDEC.

INDEC reported that year-on-year inflation reached 31.5 percent in December, marking the lowest level for that month since 2017, when inflation stood at 24.8 percent.

Monthly prices continue upward trend

Despite the annual improvement, prices increased 2.8 percent compared with November, driven mainly by higher costs in transport, housing, utilities and fuel. This monthly rise extends an upward trend that has persisted since June.

Inflation control a core goal of Milei’s government

Tackling Argentina’s long-standing inflation problem remains a central priority for President Javier Milei, who assumed office in December 2023 pledging to revive the economy through deep cuts in public spending.

Austerity delivers surplus but hits living standards

In 2024, Argentina achieved its first budget surplus in ten years as a result of austerity measures. However, these policies also led to significant consequences, including reduced purchasing power, job losses and weaker consumer spending.

Peso devaluation and economic reforms

Milei devalued the Argentine peso by more than 50 percent, implemented spending cuts and froze public budgets. These measures helped reduce annual inflation from 211.4 percent in December 2023 to 117.8 percent in December 2024.

Government defends economic strategy

Economy Minister Luis Caputo wrote on X that the stabilisation programme — based on fiscal surplus, strict control of the money supply and strengthening the Central Bank — will remain the foundation of the disinflation process. He described the progress as an “extraordinary achievement.”