The consumer price index (CPI) in Argentina was 4.6% in June, slightly above the 4.2% recorded in May, the National Institute of Statistics and Censuses (Indec) reported on Friday. As a result, the accumulated CPI over 12 months fell slightly, from 276.4% in May to 271.5% in June.
Among the increases recorded in June, the most significant were in the sectors of housing, water, electricity, gas and other fuels (14.3%); restaurants and hotels (6.3%); and education (5.7%). Prices of food and non-alcoholic beverages rose 3% compared to May and have accumulated an increase of 285.1% in 12 months. “Food inflation has plummeted,” said Javier Lanari, deputy press secretary of President Javier Milei’s government, on Friday, in addition to highlighting that this is “the item that most affects vulnerable sectors.”
Consumer prices in Argentina are expected to rise 211.4% in 2023, the highest rate since the hyperinflation of 1989-1990. The previous year, inflation was 94.8%. According to the official report, accumulated inflation in Argentina in the first half of the year was 79.8%. The most recent forecasts from private analysts collected by the Argentine Central Bank point to inflation of 138.1% for 2024, with monthly rates above 4.4% until the end of the year. Argentina is in the midst of a plan to stabilize the economy and cut public spending, led by Milei and his economic team.