Argentina’s inflation has decreased to 2.2%, the lowest since 2020, signaling a potential economic turnaround under President Javier Milei. Key policy changes have led to a budget surplus, but increased poverty and upcoming elections pose risks to the sustainability of his reforms.
Argentina’s inflation rate has fallen to its lowest level since 2020, indicating a shift in the country’s economic landscape under President Javier Milei. The current inflation rate is now at 2.2%, and the consumer price index decreased from 2.7% in December to 2.3%. This development is anticipated to be beneficial for Milei as he negotiates a new agreement with the International Monetary Fund (IMF).
Since taking office a year ago, President Milei has implemented drastic measures, including substantial reductions in government spending and cuts to subsidies. These actions have resulted in the first budget surplus in 14 years, demonstrating progress in managing public finances. However, these austerity measures have also contributed to rising poverty rates.
Milei’s reliance on executive powers in his economic strategy, often referred to as “shock therapy,” will expire later this year. This situation has sparked concerns among his supporters regarding the sustainability of his reforms. The upcoming congressional elections in October, where Milei’s party currently holds a minority, will be crucial in determining the future of his economic agenda.
In summary, Argentina’s inflation rate has dropped significantly, reflecting the impact of President Milei’s stringent economic policies. While his measures have yielded a budget surplus, they have also increased poverty levels. The expiration of his executive powers and the outcomes of the upcoming congressional elections pose critical challenges to the continuation of his reforms.
Original Source: www.semafor.com
