Consumer prices rose 2.4 percent in February, up slightly from the previous month, the INDEC national statistics bureau revealed Friday.
Rising 0.2 points from January’s 2.2 percent, inflation totals 66.9 percent over the last 12 months.
Prices have increased 4.6 percent so far this year, high but well below previous levels of the last few years. Monthly inflation has now remained below since three percent for five consecutive months, since October 2024, though it failed to drop below the two-percent floor.
In January the Central Bank reduced the ‘crawling peg,’ or controlled devaluation of the peso, from two percent monthly to one percent.
The increases were primarily driven by increases in housing, electricity, gas and other fuels (3.7 percent), followed by food and non-alcoholic beverages (3.2 percent), which were propelled by sharp increases in meat and meat-related products.
Most cuts of meat recorded monthly hikes of above 10 percent.
After publication of INDEC’s data, President Javier Milei took to social media to hail the monthly figure. He observed that without the “seasonal increase of meat,” we are “already below two percent monthly.”
Argentina remains on the podium as one of the largest meat consuming nations on the planet, although in 2024 average beef consumption fell nine percent compared to 2023, slumping to its lowest level since 1920, according to a report by the Cámara de la Industria de la Carne industry group.
The two sectors that registered the lowest increases in February 2025 were household equipment and maintenance (one percent) and clothing and footwear (0.4 percent).
At the category level, core inflation (2.9 percent) led the way, followed by regulated prices (2.3 percent). Seasonal prices registered a decrease of 0.8 percent.
INDEC detailed monthly variations for each region of Argentina. Patagonia registered the highest variation of 3.2 percent, followed by Cuyo (2.7 percent), the northwest (2.6 percent) and the pampas (2.5 percent). Below that were Greater Buenos Aires (2.2 percent) and the northeast (1.9percent).
Milei made lowering inflation the centre of his campaign before winning the Presidency. Since taking office 15 months ago, consumer prices have dramatically lowered, going from a monthly 25.4 percent in December 2023 to last month’s 2.4 percent.
At the other end of the scale, consumption has slumped and Milei’s budget-slashing approach to government has seen pensions and benefit payments reduced. Cuts to those in their retirement years made up 19 percent of last year’s reduction in spending, according to the Instituto Argentino de Análisis Fiscal (IARAF).
– TIMES/AFP/NA
