Argentine monthly inflation inches up, still low
BUENOS AIRES: Monthly inflation in Argentina inched slightly higher in June, but remained among the lowest in years, a boost to budget-slashing President Javier Milei's efforts to curb runaway prices.
June inflation came in at 1.6 percent, slightly up from May's 1.5 percent, which had been the lowest rate in five years, the INDEC statistics agency said. The annual rate came in at 39.4 percent - down from 211 percent at the end of 2023 and 118 percent last year - but still one of the highest in the world.
Milei, a self-declared 'anarcho-capitalist,' came to power in December 2023 wielding a chainsaw as a symbol of his plan to restore fiscal discipline and rein in inflation. Last year, Argentina recorded its first budget surplus in a decade thanks to austerity cuts, but the collateral damage was a loss of purchasing power, jobs, and consumer spending. INDEC said June monthly price rises were fueled mainly by education costs (up 3.7 percent), followed by rent, water and electricity (3.4 percent).
The lowest increases were in the prices for food and non-alcoholic drinks (up 0.6 percent) and clothing (0.5 percent). Improving inflation numbers have done little to quell the anger of Argentines over a loss in purchasing power, with wages having remained stagnant despite years of price rises.
In April, Argentina received $12 billion as the first disbursement of an International Monetary Fund (IMF) loan worth $20 billion, marking a strong vote of confidence in Milei's economic program. When the loan deal was announced, the IMF said it was built on 'the authorities' impressive early progress in stabilizing the economy, underpinned by a strong fiscal anchor, that is delivering rapid disinflation and a recovery in activity and social indicators.' Success in curbing prices is the result of an austerity program that entailed getting rid of tens of thousands of public sector workers, halving the number of government ministries and vetoing inflation-aligned pension increases. – AFP
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