Argentina’s inflation rate falls to the lowest in five years

Argentina’s inflation rate fell to its lowest level since 2020, a further sign of President Javier Milei’s remarkable economic turnaround.

The South American nation’s inflation rate — which was at one point the highest annually across the globe — dipped to 2.2% and the consumer price index fell to 2.3%, down from 2.7% in December. This will likely be good news for Milei amid discussions over a new International Monetary Fund deal.

Since becoming president a year ago, Milei has presided over huge cuts to government spending and a pullback on subsidies, leading to the first budget surplus in 14 years.

Though the harsh measures have also led to a sharp rise in poverty rates, the libertarian leader remains popular.

However, the executive powers Milei has relied on for his “shock therapy” expire later this year, raising fears among his backers that momentum could stall. October’s elections for Argentina’s Congress — where Milei’s party holds a small minority of seats — may define his movement’s future.