BUENOS AIRES (Reuters) -Argentine monthly inflation ticked up slightly in December, data showed on Tuesday, though the annual rate continued to slow amid tough austerity measures and spending cuts being pushed by libertarian President Javier Milei.
The monthly rate, which came in at 2.7% as estimated by analysts, meant South America’s second-largest economy ended Milei’s first full year in office with annual inflation of 117.8%. The rolling 12-month rate has been slowing from an April peak near 300%.
Milei, who took office in December 2023, has launched a nationwide austerity push, slashing many public budgets. While poverty rates have increased, price rises have steadily slowed down from eye-popping double-digit increases each month.
Still, many Argentines continue to feel the pinch to their wallets.
“People say inflation is going down, but here we always receive merchandise with different prices, it goes up and up,” said 77-year-old retiree Juan Carlos Gonzalez, who works at a produce stand to make ends meet.
The only slight acceleration from the 2.4% monthly inflation logged in November, which analysts attributed to typical seasonal price rises, was seen as good news by markets, who expect inflation to keep cooling in 2025.
The December data “confirms the disinflation process is continuing,” Economy Minister Luis Caputo said on X.