Argentina's Inflation Rate Hits 2.7% in October 2024
In a significant development for Argentina's economy, the Consumer Price Index (CPI) reported a monthly inflation rate of 2.7% for October 2024, marking the lowest rate in three years. This achievement is attributed to the administration of President Javier Milei, who has been vocal about his government's efforts to combat inflation, which had soared to 25.5% per month shortly after he took office. While the monthly figure reflects a positive trend, the annual inflation remains alarmingly high at 193%.
The National Institute of Statistics and Census (Indec) released the data, highlighting that the housing sector saw the highest price increases at 5.4%, followed by clothing and footwear at 4.4%. Despite the drop in inflation, the Argentine economy is grappling with a recession, with the International Monetary Fund projecting a 3.5% decline in GDP for the year. Furthermore, poverty levels have surged, with over half of the population classified as poor.
Political Reactions to Inflation Decline
The announcement of the 2.7% inflation rate has been met with enthusiasm from government officials and supporters. Patricia Bullrich, Minister of Security, celebrated the figure, attributing the success to Milei's policies and contrasting it with the previous administration's performance under Sergio Massa and Kirchnerism. Bullrich utilized social media to share her excitement, emphasizing the downward trend in inflation rates over the past three years: from 6.3% in October 2022 to 8.3% in 2023, and now 2.7%.
Congresswoman Carolina Píparo also expressed optimism, stating that the current inflation rate is a testament to the government's achievements and predicting that inflation will soon be a distant memory for Argentines.
Economic Challenges Persist Amidst Progress
Despite the positive news regarding inflation, challenges remain for Milei's administration. The government continues to enforce currency restrictions and has yet to fulfill promises regarding lifting these measures. Minister of Economy Luis Caputo acknowledged that while the battle against inflation appears to be won, the lifting of restrictions will only occur when the government is confident it will not destabilize the economy.
As the government navigates these economic hurdles, the focus remains on maintaining the momentum of declining inflation while addressing the underlying issues of recession and poverty affecting millions of Argentines.
