Argentina inflation falls to 14-month low

Argentina's monthly inflation fell to a 14-month low in August, reaching 1.7 percent, the National Institute of Statistics and Censuses said.

The figure was down from 2.1 percent in July. INDEC said accumulated inflation since January stood at 21.3 percent, while inflation over the past 12 months was 33.5 percent.

President Javier Milei, an economist with a radical free-market agenda, won election in December 2023 on a promise to bring down Argentina's chronically high inflation. Inflation was running in triple digits when he was elected, and his government has used austerity and strict fiscal discipline to reduce it.

Economic pressure remains. Manufacturing output has fallen, and more than 240,000 formal private sector jobs have been lost during Milei's presidency. Nearly 30,000 companies have closed in the past three years.

Industry leaders say Milei's rapid dismantling of protectionist policies left Argentine manufacturing unfairly exposed to global competition.

Argentina's central bank has lowered its 2026 growth forecast to 2.1 percent from 2.7 percent, below the 5 percent figure the government projected in its budget.