Argentina's Inflation Set for Sharp Drop: Lowest Since Milei's Rise?

Argentina's May Inflation: Lowest in Milei Era? Private Consultancies Suggest Significant Drop Argentina is bracing for what could be the lowest inflation rate since Javier Milei's administration took office. Several leading private consulting firms have released preliminary data suggesting a significant drop in inflation for May 2025. This comes as a surprise, given the country's recent economic struggles. "While there was some deflation in certain sectors due to the Hot Sale event," explains Julieta Rumi, a prominent economist, "consultancies show deflation in food and beverages, which is not typical during Hot Sale." This nuanced observation highlights the complexity of the situation. The government remains cautious, avoiding official confirmation of these figures, likely to avoid raising public expectations. However, the data from private firms suggests a potential inflation rate around 2-2.3% for the month. The report from Facimex, a leading data aggregator, further supports this trend. This unexpected drop in inflation offers a glimmer of hope for the Argentine economy, although the long-term outlook remains uncertain. The coming weeks will be crucial in confirming these early projections and understanding the underlying factors contributing to this change.