Argentina’s monthly inflation rate slowed to 2.4% in November, marking the lowest level in over four years, according to the INDEC statistics agency. This figure beat forecasts of 2.8% and was down from 2.7% in October, offering hope that the worst of the country’s economic crisis might be over. Annual inflation also eased to 166%, a significant drop from 193% the previous month.
Optimism Among Argentines
Textile merchant Aram Boyaciyan expressed cautious optimism, noting that the economy seemed to have hit bottom two months ago. “It seems to me the economy hit bottom two months ago,” he said. “Six months ago, we didn’t know where we were heading, but now we do, and everyone has to adapt to these rules.”
Price increases were led by education, rent, utilities, tobacco, and alcohol. Meanwhile, food and non-alcoholic drinks saw the slowest price rises, according to INDEC data.
Economic Measures and Government Response
Economy Minister Luis Caputo celebrated the monthly inflation report, calling it the lowest since July 2020. He suggested that this progress brings Argentina closer to reducing its controlled devaluation of the peso from 2% to 1% monthly. The government, under President Javier Milei, has implemented strict austerity measures to address Argentina’s deep fiscal deficit and stabilize the economy.
Annual inflation, which peaked near 300% in April, is expected to decline to around 100% by the end of 2024.
Challenges for Salaries and Economic Recovery
Despite the progress, many Argentines continue to feel the strain of the ongoing recession. Teacher Aida Segot highlighted the pressure on household finances, saying, “Each month it used to run out on the 20th; now it runs out on the 12th.”
Public sector workers, in particular, have been hit hard by Milei’s spending cuts, although his reforms retain significant support among the population. Many Argentines remain hopeful that the reforms will lead to long-term stability.
Support for Milei’s Administration
After one year in office, Milei, a political outsider, has managed to maintain robust support, even as many citizens face economic challenges. Buenos Aires merchant Dolores Sagasta urged patience: “We need to give him more time; it’s only been a year, and we need to give him more time.”
As Milei focuses on reducing state spending and stabilizing the economy, many Argentines view his progress on inflation as a sign of a brighter economic future.
