Argentina’s inflation rose to 2.4% in February, driven by housing increases. Annual inflation fell to 66.9%, better than previous months but above forecasts. The government, under President Javier Milei, has made strides to control inflation, although austerity measures have led to public protests. Future predictions indicate inflation may drop to 23.3% by 2025.
In February, Argentina’s monthly inflation rate rose to 2.4%, aligning with analyst expectations, according to data from the INDEC statistics agency. This increase reflects an uptick from the 2.2% rate in January, primarily driven by nearly 4% rises in housing and public service costs.
Year-over-year inflation reached 66.9% through February, down from the previous month’s 84.5%, though slightly surpassing analyst projections. Despite progress under President Javier Milei’s government, aiming to control soaring prices, inflation rates have stagnated between 2% and 3% in recent months.
An analyst from Max Capital suggested, “We expect March inflation to be close to 2%, although according to high-frequency data the first week of the month showed higher inflation than February.” The Milei administration has managed to reduce inflation from nearly 300% early last year to more manageable levels, though austerity measures have sparked significant public protests.
In light of this, projections from central bank analysts indicate that annual inflation may stabilize at 23.3% by the end of 2025. Despite past extreme fluctuations, the current focus appears to be effectively addressing inflationary pressures while navigating the socioeconomic challenges.
Argentina’s inflation has remained a complex challenge, with February’s rate at 2.4%, influenced by rising housing and service costs. Although the annual rate has decreased from previous highs, it remains above expectations. The government’s measures under President Javier Milei have stabilized the economy somewhat, yet public unrest persists due to austerity policies. Looking ahead, analysts are cautiously optimistic, projecting a significant decline in inflation rates by 2025.
Original Source: money.usnews.com
