Argentina CPI Inflation Rate: Data, Forecast & Trends

As of April 2025, Argentina's annual inflation rate stands at 47.3%, according to the National Institute of Statistics and Censuses (INDEC). This marks a further significant decline from 55.9% in March 2025 and is the lowest year-on-year increase since May 2021. The reduction reflects the sustained impact of President Javier Milei's economic reforms aimed at stabilizing the economy, which include sharp public spending cuts and reduced red tape to stimulate private-sector activity and improve the supply of goods and services.

April saw a continued broad-based decline in price pressures across many components. While specific YoY percentage changes for all components in April 2025 are not fully available, trends indicate moderation. Food inflation eased to 41.4% (March: 70%). Core inflation also slowed. Conversely, some categories like administered prices (e.g., utility adjustments) might still see significant YoY increases as subsidies are phased out.

In April 2025, Argentina's Consumer Price Index (CPI) inflation rate increased by 2.8% month-on-month, a significant slowdown from 3.7% in March and below market expectations of a 3.1% rise. This indicates a continued, albeit decelerating, monthly increase in prices. Key CPI components experienced notable changes between March and April 2025:

• Education: This category saw a sharp deceleration to 2.5% in April, a significant drop from the 21.6% increase in March, which was largely due to the start of the academic year.
• Food and Non-Alcoholic Beverages: Prices in this sector rose by 2.8% in April, down from a 5.9% increase in March.
• Housing, Water, Electricity, Gas, and Other Fuels: This group experienced a 1.9% rise in April, slowing from a 2.9% increase in March.
• Communications: Price increases accelerated to 2.8% in April, up from 2.5% in March.
• Health: Prices in this sector also saw an acceleration, rising by 2.5% in April compared to 1.8% in March.
• Recreation and Culture: Prices increased by 1.9% in April, an acceleration from the 0.2% rise in March, though seasonal prices generally slowed.
• Restaurants and Hotels: Prices in this sector rose by 4.1% in April, an acceleration from 3.9% in March.
• Clothing and Footwear: This category saw a 3.8% increase in April, after a 4.6% rise in March.
• Transportation: Prices remained unchanged at 1.7% in April, after a 1.7% increase in March.

In 2024, inflation in Argentina averaged 178% over the prior year. This was the world's highest rate and Argentina's highest rate in over three decades, and reflected sustained currency depreciation—in particular, the 50% devaluation soon after President Milei took office in December 2023. In comparison, the average rate in Latin America was 7.8% in 2024. That said, inflation in Argentina peaked in mid-2024 and has declined sharply towards year-end 2024 and into 2025 as the government's austerity program took hold.

Argentina's inflation rate has been highly volatile over time but has tended to be elevated relative to the rates in most other Latin American economies, due to sustained currency depreciation, fiscal laxity and monetary financing of the budget deficit. In the early 1990s, inflation was briefly brought under control after the hyperinflation of the late 1980s, when prices had surged over 3,000% annually. The introduction of the Convertibility Plan in 1991, which pegged the Argentine peso to the U.S. dollar, temporarily stabilized prices, and annual inflation fell to single digits.

However, this stability unraveled during the 2001–2002 economic crisis, which saw the collapse of the currency peg and inflation surge again. Throughout the 2000s and 2010s, Argentina faced persistently high inflation, typically in the double digits. Despite various government interventions, such as price controls and subsidies, inflation remained elevated, fueled by fiscal deficits, money printing, and currency devaluation.

Core inflation—a measure of underlying price pressures which strips out volatiles like food and energy—clocked 46.9% in April 2025, a decrease from 51.3% in March. While still high, this figure is now slightly below the headline inflation rate of 47.3%. This suggests that underlying inflationary pressures are also easing, aligning with the overall disinflationary trend. In 2024, core inflation averaged 145%, compared to a regional average of 74%. Over the last decade, core inflation has averaged 34%.

Argentina's inflation outlook, despite recent deceleration, remains subject to several significant risks that could derail progress towards price stability. The government's aggressive fiscal adjustment and monetary tightening have shown some positive results, with monthly inflation rates declining. However, the path ahead is fraught with challenges.

One primary risk stems from the exchange rate policy. While a managed floating exchange rate system has been implemented, any significant depreciation of the peso, whether intentional or market-driven, could quickly reignite inflationary pressures. This is particularly sensitive given Argentina's history of currency devaluations and their immediate pass-through to domestic prices, especially for imported goods and those with imported inputs. The potential for a "carry trade" unwinding, where investments in pesos are reversed due to doubts about the exchange rate's stability, also poses a threat.

Another critical factor is the sustainability of fiscal discipline. The current government has achieved a fiscal surplus, but maintaining this austerity, particularly in an election year (as 2025 is for midterms), presents a considerable challenge. Any deviation from strict spending cuts or an inability to increase tax collection could lead to renewed reliance on money printing, a historical driver of Argentina's chronic inflation.

Furthermore, the pending adjustment of regulated prices (such as utilities and public transport) and the recovery of real wages could put a floor on disinflation. While improving purchasing power is desirable, sharp increases in these areas could feed into broader price rises, making it harder to bring inflation down to target levels.

Finally, social and political stability remains a background risk. High poverty rates and the impact of austerity measures on the working class could lead to social unrest, potentially undermining the government's ability to implement and sustain its economic reforms. External shocks, such as fluctuations in commodity prices or global economic downturns, also pose a perennial risk to Argentina's fragile economy and its inflation trajectory.

What causes inflation in Argentina?
Inflation in Argentina is primarily caused by persistent fiscal deficits that are often financed through central bank money printing. This expansion of the money supply reduces the value of the Argentine peso, leading to higher prices. Additionally, frequent currency devaluations, weak monetary policy credibility, and a lack of fiscal discipline contribute to inflationary pressures. Structural issues—such as heavy reliance on imports, rigid labor markets, and inefficient public spending—worsen the situation. Political instability and short-term economic policies also fuel inflation. Price controls and subsidies, while aimed at containing costs, often create distortions that ultimately drive prices higher rather than curbing inflation.

How does Argentina's inflation compare to other countries?
Argentina's inflation rate is among the highest in the world, often surpassing triple digits in recent years. For instance, in 2023, Argentina recorded an annual inflation rate of over 200%, far exceeding the global average. Most developed countries maintain inflation below 5%, even during economic turbulence. Compared to regional neighbors like Brazil or Chile, Argentina's inflation is extraordinarily high, largely due to its monetary financing practices and weaker institutional frameworks. While some emerging economies face inflationary pressures, Argentina's prolonged and extreme inflation levels are more akin to historical hyperinflation cases, making it a global outlier in terms of price instability.

What is the target inflation rate in Argentina?
Argentina's central bank historically aimed for single-digit inflation targets, typically between 5% and 10% annually, though these targets have been consistently missed. Due to chronic inflation and economic instability, actual rates have remained far above the intended goals. In recent years, especially under emergency economic conditions, the government has avoided setting rigid targets and instead focused on broad stabilization efforts. Under President Javier Milei, policies have shifted toward reducing monetary financing and liberalizing markets. While a long-term goal remains to bring inflation down to single digits, no formal, credible inflation target has been firmly established during this transitional period.

How does inflation affect the economy of Argentina?
Inflation severely undermines Argentina's economic performance by eroding purchasing power, destabilizing consumer behavior, and reducing savings. It creates uncertainty, discouraging both domestic and foreign investment. High inflation also disrupts long-term planning for businesses and households, distorting prices and making credit more expensive or inaccessible. For lower-income populations, inflation disproportionately increases the cost of basic goods and services, intensifying poverty and social unrest. It also puts pressure on wages, leading to labor conflicts and potential economic stagnation. Over time, chronic inflation damages the credibility of financial institutions and the government, contributing to a vicious cycle of economic distrust and underperformance.

Argentina Inflation Data