Argentina recorded a 2.2% inflation rate in January, the lowest in 4.5 years, down from 2.7% in December. January marks the fourth consecutive month below 3%. Year-on-year, inflation is at 84.5%, below 100% for the first time in two years. Austerity measures by President Javier Milei have sparked protests and increased poverty, despite hopes for economic growth in 2025.
Argentina’s inflation rate for January registered 2.2 percent, the lowest monthly rate in 4.5 years, according to the INDEC statistics agency. This marks a decrease from December’s 2.7 percent, representing the fourth consecutive month with inflation below 3 percent. Year-over-year, inflation still remains high at 84.5 percent, but it is notably below the 100 percent mark recorded in the previous two years.
This decline in inflation aligns with President Javier Milei’s austerity measures following a tumultuous economic period. In December 2023, inflation peaked at 25.5 percent after a significant devaluation of the Argentine peso. Milei’s administration has implemented drastic cuts, including a workforce reduction of over 33,000 public sector employees and a reduction in government ministries, to stabilize the economy.
While these measures have contributed to the recent inflation decline, they have also led to economic recession and increased poverty. Protests erupted as citizens struggled with the effects of austerity, though Milei defends the policies as necessary for long-term economic recovery. Economy Minister Luis Caputo emphasized the continuation of disinflation efforts under Milei’s governance.
Despite challenges, Argentina achieved its first budget surplus in ten years last year. The government remains optimistic about economic prospects, forecasting a 5.0 percent GDP growth for 2025 as it aims to further stabilize and revitalize the economy after years of decline.
In summary, Argentina’s inflation has decreased significantly, reaching its lowest monthly rate in years. President Javier Milei’s controversial austerity measures have contributed to this decline but have also led to increased poverty and public discontent. The government anticipates economic recovery in the coming years, hoping to stimulate growth despite the ongoing challenges.
Original Source: www.france24.com
