Argentina’s wholesale inflation has reached its lowest level since 2020. Wholesale prices experienced a decline in May, marking the first decrease since the peak of the pandemic. Argentine President Javier Milei achieved another economic milestone Tuesday as data revealed a decline in wholesale prices in May, marking the first decrease since the peak of the pandemic. This development bolsters his momentum ahead of the midterm elections in October.
The producer price index experienced a decline of 0.3 percent from April, while it increased by 22.4 percent year-over-year, according to data from the INDEC national statistics bureau. In a notable reversal from December 2023, the inaugural month of Milei’s administration, wholesale monthly prices experienced a dramatic increase of 54 percent. The libertarian frequently cites the indicator to caution that Argentina was approaching hyperinflation as a consequence of his predecessor’s policies.
The monthly report indicates that local prices remained stable, whereas the prices for imported products experienced a decline of 4.1 percent. Economy Minister Luis Caputo expressed his satisfaction regarding the positive developments on X. Discounting pandemic data that witnessed a significant decline in demand, the May print represents the lowest figure in the series that commenced in 2016, Caputo noted.
In May, the rate of monthly consumer price increases moderated to its lowest level in five years, registering at 1.5 percent. Milei’s commitments to austerity and a stable peso have contributed to anchoring inflation, a persistent concern for Argentines throughout history. Argentina is set to hold midterm elections in October, with Milei poised to enhance his influence in Congress following a notable reduction in inflation and poverty levels, alongside economic growth recorded this year.