Argentina’s headline inflation rate slowed to 1.9% in June, marking the lowest monthly figure in twelve months and extending a three-month downward trend, according to data released Tuesday by the National Institute of Statistics and Censuses (INDEC).
The print came in line with forecasts from local consultancies, which had estimated the figure would land between 1.8% and 1.9%.
After months of double-digit monthly inflation, the consistent drop below the 2% threshold signals that the combination of fiscal consolidation and monetary tightening is beginning to anchor price expectations.
The deceleration is a critical milestone for the current administration’s economic stabilization program.
After months of double-digit monthly inflation, the consistent drop below the 2% threshold signals that the combination of fiscal consolidation and monetary tightening is beginning to anchor price expectations.
For investors, the data reduces the immediate risk of a renewed devaluation spiral, though structural challenges remain.
The peso has shown signs of stabilization in recent sessions, supported by the improving inflation outlook and the central bank’s efforts to rebuild reserves.
However, the currency remains sensitive to political developments and the pace of IMF program reviews.