In July, Argentina experienced a monthly inflation rate of 1.9%, as reported by the INDEC statistics bureau on Tuesday. It marks the second consecutive month of increase in the Consumer Price Index (CPI) following June’s rate of 1.6%. Inflation experienced a variation of 17.3% over the initial seven months of 2025, alongside a year-on-year increase of 36.6%.
The sector exhibiting the most significant monthly growth was recreation and culture, reflecting a 4.8% increase. Nonetheless, the most significant contribution to the index was observed in food and non-alcoholic beverages, which experienced an increase of 1.9%. In a recent post on X, Economy Minister Luis Caputo expressed satisfaction that the figure remained below 2% for the third consecutive month, noting that this trend had not been observed since November 2017.
The 36.6% year-on-year increase signifies fifteen consecutive months of deceleration relative to the same month in the prior year, he noted. “This year-on-year variation is the lowest since December 2020,” he added. Caputo also stated that core inflation was 1.5%. The Argentine Center of Economic Policies (CEPA, by its Spanish initials) reported that in July, the exchange rate experienced a rise of 13.2%; however, the pass-through effect, which refers to the extent to which a devaluation impacts local prices, was not “widely felt.”
“The explanation, to a large extent, has to do with the fact that the greater part of the currency jump occurred towards the end of the month,” the report read, “therefore, it will only have a greater impact in August.” The report indicates that the government has implemented a cap on public increases in utility fees, gasoline, medicines, and prepaid medicine. In August, the report indicated that the administration increased interest rates to support carry trades and to mitigate the appreciation of the exchange rate.
The INDEC report for July indicates a decline in clothing prices by 0.9%. Marco Meloni, vice-president of the Pro-Tejer garment factories foundation, informed the Herald that, contrary to popular belief, prices are not decreasing as a result of the Milei administration’s approach to imports. “It is purely a consumption problem,” stated Meloni, noting that prices are declining as a result of “sales plummeting.”
“The issue at hand is that it will adversely affect all parties involved — importers, non-importers, manufacturers, and essentially everyone,” he added. Before the conclusion of the year, the INDEC is set to publish a revised Consumer Price Index informed by the household expenditure survey conducted in 2017-18.
The Milei administration faces scrutiny regarding its inflation measurement methodology, relying on a 2004 expenditure survey that inadequately captures the significance of utility fees in the monthly expenses of Argentines. The announcement of the forthcoming alteration was disclosed in the most recent staff report from the International Monetary Fund (IMF). The objective is “to better reflect structural changes in cost patterns” and to “improve data quality.”