Argentina inflation slows to lowest level since last August

Argentina’s inflation slowed for a third straight month to the lowest level since August in a victory for President Javier Milei following a surge in March due to the Iran war-related energy shock.

Consumer prices rose 1.9 percent last month compared with May, just below the two percent median estimate of economists surveyed by Bloomberg. From a year ago, inflation picked up marginally to 33.5 percent from 33.2 percent, according to data published Tuesday by the statistics agency INDEC.

Economy Minister Luis Caputo had said during a TV interview last week that analysts expected inflation to slow below two percent in June, after it slowed in April and May.

Seasonal prices saw the biggest increases within core inflation, which clocked in at 1.6 percent, on vegetables and tourism just ahead of winter holidays in the Southern Hemisphere.

“Another decline in Argentine inflation in June, even if aided by favourable seasonality, suggests price pressures are contained and provides scope for the government’s economic team to continue balancing disinflation objectives with other policy priorities like growth and external resilience," said Jimena Zúñiga, Latin America geoeconomics analyst

The slowing in monthly consumer price increases comes on the heels of Milei scoring rating upgrades from both S&P Global Ratings and Fitch Ratings, bringing Argentina one step closer to regaining access to international capital markets.

Economists surveyed by the Central Bank in June forecast a 2026 year-end inflation rate of 30 percent, down from 30.5 percent, in the previous survey, with growth of three percent.