Argentina's Inflation Falls to Lowest Level Since Early 2022

Monthly Price Increases Slow to 4% in July

Buenos Aires, Argentina (AP) - August 14, 2024

Argentina's monthly inflation reached its lowest point since March 2022, according to data released by the government on Friday, marking a significant milestone in the country's economic recovery.

Consumer prices rose by 4% in July compared to the previous month, matching the median forecast of economists surveyed by Reuters. This is the lowest monthly inflation rate since February 2022, when it stood at 3.9%.

The slowdown in inflation is attributed to a combination of factors, including government measures to stabilize the economy, rising interest rates, and a decrease in global commodity prices. The annual inflation rate, which measures price increases over the past 12 months, also eased slightly to 27.15% in July.

The latest inflation figures are seen as a positive sign for Argentina's economy, which has been grappling with high inflation for several years. The government has implemented a series of austerity measures to bring inflation under control, including raising interest rates and reducing spending.

The slowdown in inflation is expected to provide some relief to Argentine consumers who have been struggling with rising prices for food, transportation, and other essential goods. However, economists caution that inflation is still significantly higher than the government's target of 3%.