Christopher Martin This story was updated at 17:20 p.m.
Consumer prices in Argentina rose by 1.6% in June, marking another win for President Javier Milei’s economic programme.
Official figures released on Monday by the national statistics agency INDEC put the annual inflation rate at 39.4%, with prices rising 15.1% in the first six months of the year.
It marks another celebration for the government, who had also welcomed May’s data when inflation fell to 1.5%. That was the lowest monthly rate since the onset of the Covid-19 pandemic. April’s inflation stood at 2.8%.
Milei hailed the news on X, celebrating his Economy Minister Luis Caputo. “Let’s go, Toto [Caputo].” In the same post, however, he also used the term “mandrilandia” — widely interpreted as a homophobic slur — to deride his critics, saying they would “cry”, while “good Argentines will cheer about 1.6% inflation.”
According to INDEC, the steepest monthly rise came from the Education category, which climbed 3.7% due to higher tuition fees. This was followed by Housing, Water, Electricity, and Other Fuels, which rose by 3.4%, driven by increases in rent and building-related expenses.
In contrast, clothing and footwear rose by just 0.5%, and food and non-alcoholic beverages increased by 0.6%.
Services overall rose 3.2% in June marking quadruple the increase seen in goods (0.8%), underscoring the continued pressure on renters, utility users, and consumers of regulated services. Prices for regulated items, such as electricity and public transport, increased by 2.2%, while seasonal products posted a slight decline of 0.2%.
Regional differences were notable. The Buenos Aires province area saw the highest monthly inflation at 2.0%, with Patagonia registering 1.8%.
Since taking office in December 2023, President Milei, a self-described libertarian anarcho capitalist, has made fighting inflation the core of his “chainsaw” economic reforms. These include deep spending cuts, the removal of subsidies, and a major currency devaluation. Loans from the International Monetary Fund and World Bank respectively have so far speculatively increased foreign investor confidence.
While monthly inflation has eased in recent months, the broader economic picture remains strained. Argentina continues to grapple with high poverty levels, and labor unions argue that the impact of austerity is falling disproportionately on lower-income groups.
