Argentina | 2025 inflation was the lowest in 8 years

Summary

Inflation in Argentina closed 2025 at 31.5% year-on-year, its lowest level since 2017, driven by a sharp deceleration compared to 2024. Despite the rebound in the second half due to tariffs and exchange rates, the disinflation process is expected to continue.

Key points

• Key points:
• The consumer price index for December registered a monthly increase of 2.8%, exceeding market expectations, driven by the correction of regulated prices and the increase in meat.
• The categories with the highest annual increases were Education with 52.3%, Restaurants and Hotels with 42.2%, and Housing, water, electricity and gas with 41.6%, the latter affected by the removal of subsidies.
• Core inflation stood at 3.0% monthly in December, the highest figure since April, closing the year at 33% year-on-year, while seasonal prices increased only 17% during the year.
• The inflation projection for 2026 was raised to 20% annually due to the inertia of the last quarter and the change in the exchange rate scheme, which now prioritizes the rebuilding of international reserves.

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