Argentina’s Inflation Rate Hits a Low in 2025
Argentina’s annual inflation rate for 2025 stands at 31.5%, marking the lowest level in eight years, according to a report from the National Institute of Statistics and Census (INDEC). This announcement was made on Tuesday.
INDEC, which operates under Argentina’s Ministry of Economy, is responsible for tracking the country’s monthly inflation rates.
The revelation of the lowest annual inflation rate in nearly a decade coincided with INDEC’s monthly inflation update, which recorded a rate of 2.8% for December 2025.
In addition to this update, Argentina’s Ministry of Economy provided a visual comparison of the inflation rates over the years. The graph highlights a notable decline from an astonishing 211.4% in 2023 and 117.8% in 2024 to the current 31.5% in 2025.
On social media, Economy Minister Luis Caputo expressed that 2025 ended with the most favorable inflation rates in both general and core categories in eight years. He characterized this achievement as “extraordinary,” emphasizing that it came about amid various economic changes, including a floating exchange rate.
Caputo stated that a program focusing on fiscal surpluses, strict monetary control, and capital gains is essential for sustaining the deflation efforts. He asserted that this approach is the only realistic way to eliminate inflation and restore Argentina’s economic strength.
President Javier Milei commended Caputo, affectionately known as “Toto,” in a brief social media update, calling him “the greatest man.”
Cabinet Secretary Manuel Adorni noted the significant drop in inflation, observing that when the current administration began, the rate was a staggering 211.4%, the highest globally. He remarked that this progress is simply the outcome of doing what needed to be done.
In other news, Treasury Secretary Scott Bessent recently announced that Argentina has fully repaid the $2.5 billion drawn from a $20 billion swap line established with the previous U.S. administration.
December’s monthly inflation rate, which was recorded at 2.8%, slightly increased from November’s 2.5%. This uptick is attributed to adjustments in meat and fuel prices, contributing nearly an additional percentage point to the consumer price index, according to Sebastian Menescardi, president of Argentina’s financial oversight body, Eco Go.
Menescardi added that while this rise presents an immediate challenge for the government, it is also somewhat reassuring since these price fluctuations are expected to be temporary, linked to the necessary adjustments of previously lagging components ahead of the elections.
Claudio Caprullo, director of the Argentine consulting firm Analytica, highlighted that while the government faces challenges, the focus must remain on creating a sustainable macroeconomic environment to ensure inflation continues on a downward trend, stressing that this is not likely to be a swift process.
