Argentina’s Inflation Hits New Low Under Milei’s Leadership

Argentina’s inflation rate likely slowed to its lowest monthly level since President Javier Milei took office in late 2023, marking another key victory for his bold economic reform agenda, according to a Reuters poll of analysts ahead of Thursday’s official data release.

The consumer price index (CPI) is expected to have risen just 2.3% in January 2025, down from 2.7% in December, based on the median estimate from 25 analysts. If confirmed, this would be the slowest monthly increase since mid-2020, a stark contrast to the triple-digit inflation that plagued the country in recent years.

From Crisis to Stability: Milei’s Austerity Measures Deliver Results

Argentina, a major grain exporter and emerging energy powerhouse, has struggled with some of the world’s highest inflation rates in recent years. Annual inflation soared to nearly 300% in early 2024 but dropped sharply to 118% by year-end, with monthly inflation falling from 25% to under 3% since October.

Economic consultancy Eco Go highlighted Milei’s success in stabilizing the economy, stating:

“Inflation in January will be 2.3%, consolidating the downward trend observed throughout 2024.”

Their report attributes this cooling trend to lower price increases in utilities and a calmer start to the year. Projections for January inflation ranged between 1.9% and 2.8%, demonstrating widespread agreement that Milei’s policies are effectively controlling price pressures.

Ending Capital Controls: The Next Step in Argentina’s Economic Revival

Bringing inflation under control is a crucial milestone for Milei’s government, which has prioritized scrapping capital controls that have long stifled business and investment. Officials aim to maintain monthly inflation below 2% before fully lifting these restrictions, though analysts remain cautious about the exact timeline.

According to Eco Go, the downward trajectory will continue, potentially breaking the 2% barrier in the second half of 2025.

Economist Eugenio Marí of Fundación Libertad y Progreso is even more optimistic, predicting that February inflation could drop to 1.7%, helped by Milei’s controlled currency devaluation strategy, known as the crawling peg, which slowed from 2% to 1% per month.

“February will be the month of the crawling peg, which will help slow down tradable prices. The key will be ensuring monetary policy remains consistent with the peso depreciating at this controlled pace.” — Eugenio Marí

Milei’s Economic Vision Taking Shape

Milei’s radical economic overhaul is proving effective, with inflation plummeting, investor confidence rising, and Argentina gradually regaining financial stability. As his administration continues deregulation, fiscal discipline, and pro-market reforms, Argentina appears to be on the path to long-term economic recovery.

With inflation cooling faster than expected, Milei’s vision of a stronger, freer economy is coming closer to reality—one historic reform at a time.