Argentina: Inflation Drops to 8.8%, Reaching Single Digits for First Time in 6 Months

The National Institute of Statistics and Census of Argentina (INDEC) announced on Tuesday that inflation in Argentina continued its downward trend in April, reaching an 8.8 percent rate that month and dropping to a single digit for the first time in six months.

The continued reduction in inflation follows the implementation of President Javier Milei’s “shock therapy” economic measures, which his administration began upon taking office in December 2023 to avoid a hyperinflation spiral in Argentina.

April’s reduction in inflation, in addition to being the first time since October 2023 when it has dropped down to one digit, also marks the fourth month in a row that inflation has significantly fallen in Argentina during Milei’s now five-month presidency.

At the time Milei took office and succeeded his predecessor, socialist former President Alberto Fernández, inflation in Argentina had dramatically spiked to 25.5 percent in December. Since then, Milei’s economic policies and “zero deficit” goals have resulted in consecutive monthly drops in inflation. Inflation fell to 20.6 percent in January, 13.2 percent in February, and 11 percent in March.

Milei celebrated the April 2024 inflation rate announcement on social media by chanting a soccer “Goal!” exclamation, accompanying his post with a picture of him hugging Economy Minister Luis Caputo.

Shortly before the INDEC announcement, Milei declared that “we are beating inflation [with goals]” during a speech given as part of the inauguration of a bust of former Argentine President Carlos Menem in the nation’s presidential palace.

Argentine lawmaker Ramiro Marra of Milei’s libertarian Liberty Advances party celebrated April’s inflation results in a statement lamenting that the previous socialist government “had left us at the gates of an hyperinflation.”

“Despite all this, in 5 months we managed to bring inflation down to one digit,” Marra’s message read. “There is still a lot of room for improvement, but we are on the right track.”

Presidential spokesman Manuel Adorni explained on Tuesday that a large part of what led to the 8.8 percent inflation rate during April was the normalization of once regulated prices, noting that in the case of food, inflation was only six percent.

“Inflation is being pulverized and has its death certificate signed,” Adorni proclaimed.

Adorni also said in an interview with the Argentine newspaper La Nación that although the inflation rate number “is bad,” the path is “clear” for Argentina’s economic recovery.

“It is the lowest [rate] of the Milei era and of the last six months,” Adorni said. “Besides, it is a purer inflation than other numbers of the past because you do not have stepped prices [government-regulated prices].”

“There was a great disorder in the economy. Of course the number is bad, but it seems to me that the path is clear and that the cleaning of the [Argentine] Central Bank and the closing of the banknote machine have paid off,” he continued.

The Argentine presidential spokesman continued, “when you analyze core inflation, which is the purest of all, it was 6.3 percent. The inflation of those who have less is much lower than the general index. Hopefully, salaries will start to beat inflation.”

“Inflation has its death certificate signed, because you threw away the bill making machine, when you achieved fiscal balance, and when you clean up the Central Bank, inflation disappears,” Adorni said. “The way to end inflation is this.”

Christian K. Caruzo is a Venezuelan writer and documents life under socialism. You can follow him on Twitter here.