Two years after Javier Milei came to power, inflation may no longer be the main source of concern for Argentines, but it still seems stuck at 2% per month.
Indec (National Institute of Statistics and Census) announced this Thursday (11) that the monthly variation in prices was 2.5% in November, a slight acceleration compared to the previous month (2.3%) and the highest level since April (2.8%).
The CPI (Consumer Price Index) also showed that in 12 months inflation was 31.4% and, this year, 27.9%.
Consultants predicted that in November it would be between 2.3% and 2.5%. Thus, the Minister of Economy, Luis Caputo, was unable to stop the upward trend in inflation, which began in August with an index of 1.9%.
An overview of national data, inflation in the Autonomous City of Buenos Aires has already shown that the indicator in November was 2.4%, with a monthly increase of 0.2 percentage points.
The consultancy Eco Go estimates the price acceleration due to a 3% increase in the Food and Non-Alcoholic Beverages category, particularly due to the significant increase in an important product for Argentinian families: meat.
Although the increase in meat consumption was already notable since October, the situation intensified in November, increasing the category of foods consumed at home by 2.6%.
End-of-year promotions helped lower the prices of electronics and household appliances, which increased by 1.1%. However, regulated services such as public transport, electricity and gas saw stronger increases than in previous months, at 3.4%.
The Ministry of Economy, after the government’s victory in the October legislative elections, authorized the increase in public services and transport and has already announced a new subsidy program for electricity, gas and bottled gas in 2026.
Additionally, Minister Caputo was criticized for failing to implement tax updates that could have generated significant revenue for the government.
Milei has just completed her two-year term, having assumed the presidency on December 10, 2023.
Before Freedom Moves came to power, inflation in November 2023 was 12.8% and the year-on-year change was 160.9%. In August of the same year, inflation stood at 12.4% and remained in double digits.
During the entire government of Peronist Alberto Fernández (2019-2023), accumulated inflation was 930.4%.
One of Milei’s first measures was the devaluation of the official exchange rate, from 366 Argentine pesos to 800 pesos (currently, 1 US dollar is worth 1,440 pesos, at the official exchange rate). Inflation in December was 25.5%, the highest monthly figure in 32 years, and the year ended with an annual increase of 211.4%.
The president now promises that inflation will be a problem of the past by the middle of next year, but the government has already announced tariff subsidy reductions for 2026.
For December, inflation is expected to remain at 2.1%, and between January and April 2026 it will be between 1.5% and 1.9%.
“Suppressed inflation” is currently estimated at 4.2 points, with the largest upcoming adjustments concentrated in utilities, such as electricity and gas, as well as transport, telephone and fuel.
About The Author
