Argentina inflation plummets to 1.5%
Agencies
Argentina's monthly inflation dropped to 1.5% in May, its lowest level in five years, a positive sign for President Javier Milei's aggressive austerity campaign aimed at reining in runaway prices.
Annual inflation came in at 43.5% in May, the INDEC statistics agency reported Thursday, down from 211% at the end of 2023 but still one of the highest rates in the world.
The monthly rate was down from 2.8% in April.
Milei, a self-declared 'anarcho-capitalist,' came to power in December 2023, wielding a chainsaw as a symbol of his plan to restore fiscal discipline and rein in inflation.
Last year, Argentina recorded its first budget surplus in a decade thanks to austerity cuts, but the collateral damage was a loss of purchasing power, jobs, and consumer spending.
Milei's government hailed the May figure, which it attributed to a 'successful orthodox stabilization plan' that included a recent loosening of exchange controls.
The INDEC said May monthly price rises were boosted mainly by telephone and internet costs (up 4%), restaurants and hotels (3%) and health expenses (2.7%).
The lowest increase was for transport (0.4%), followed by food and non-alcoholic beverages (0.5 %).
The positive numbers will do little to quell the anger of Argentines over their loss in purchasing power, with wages having remained stagnant over many months of high inflation.
'Prices are not dropping; they are rising,' Cristian Rodriguez, a 45-year-old logistics employee, told Agence France-Presse (AFP).
In April, Argentina received $12 billion as the first disbursement of an International Monetary Fund (IMF) loan worth $20 billion, marking a strong vote of confidence in Milei's economic program.
When the loan deal was announced, the IMF said it was built on 'the authorities' impressive early progress in stabilizing the economy, underpinned by a strong fiscal anchor, that is delivering rapid disinflation and a recovery in activity and social indicators.' Success in curbing prices is the result of an austerity program that entailed firing tens of thousands of public sector workers, halving the number of government ministries and vetoing inflation-aligned pension increases.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Qatar Tribune
15-06-2025
- Qatar Tribune
India overtakes Japan to become world's 4th largest economy
Agencies Washington IN a defining moment within our Epoch, India has officially overtaken Japan to become the fourth-largest economy in the world. It is confirmed by leading assessments from the International Monetary Fund (IMF), World Bank, and other key institutions. This milestone is not just a reflection of economic growth; it is a powerful statement about the rising potential of the Global South, particularly for countries within the BRICS+ nations. Projections also indicate that India is on course to overtake Germany by 2027, further cementing its position on the global stage. For many experts, India's rise to this unprecedented economic status was not a product of chance. This pivotal development signifies India's commitment to elevating the voice of the Global South and fostering deeper economic ties with Africa. India's achievement in becoming the world's fourth-largest economy within our lifetime is not merely an Indian milestone; it is a beacon of hope for Africa and a testimony to what is attainable. The IMF also expects that India will be the fastest-growing major economy in the next two years. The Indian economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, higher than global and regional counterparts.
Qatar Tribune
14-06-2025
- Qatar Tribune
Argentina inflation plummets to 1.5%
Agencies Argentina's monthly inflation dropped to 1.5% in May, its lowest level in five years, a positive sign for President Javier Milei's aggressive austerity campaign aimed at reining in runaway prices. Annual inflation came in at 43.5% in May, the INDEC statistics agency reported Thursday, down from 211% at the end of 2023 but still one of the highest rates in the world. The monthly rate was down from 2.8% in April. Milei, a self-declared 'anarcho-capitalist,' came to power in December 2023, wielding a chainsaw as a symbol of his plan to restore fiscal discipline and rein in inflation. Last year, Argentina recorded its first budget surplus in a decade thanks to austerity cuts, but the collateral damage was a loss of purchasing power, jobs, and consumer spending. Milei's government hailed the May figure, which it attributed to a 'successful orthodox stabilization plan' that included a recent loosening of exchange controls. The INDEC said May monthly price rises were boosted mainly by telephone and internet costs (up 4%), restaurants and hotels (3%) and health expenses (2.7%). The lowest increase was for transport (0.4%), followed by food and non-alcoholic beverages (0.5 %). The positive numbers will do little to quell the anger of Argentines over their loss in purchasing power, with wages having remained stagnant over many months of high inflation. 'Prices are not dropping; they are rising,' Cristian Rodriguez, a 45-year-old logistics employee, told Agence France-Presse (AFP). In April, Argentina received $12 billion as the first disbursement of an International Monetary Fund (IMF) loan worth $20 billion, marking a strong vote of confidence in Milei's economic program. When the loan deal was announced, the IMF said it was built on 'the authorities' impressive early progress in stabilizing the economy, underpinned by a strong fiscal anchor, that is delivering rapid disinflation and a recovery in activity and social indicators.' Success in curbing prices is the result of an austerity program that entailed firing tens of thousands of public sector workers, halving the number of government ministries and vetoing inflation-aligned pension increases.
Al Jazeera
12-06-2025
- Al Jazeera
Milei says Argentina to move embassy from Tel Aviv to Jerusalem in 2026
Argentinian President Javier Milei has announced that his country will move its embassy in Israel to Jerusalem next year, as the populist leader signalled his support for Prime Minister Benjamin Netanyahu's increasingly isolated government. Argentina's embassy is currently located in Herzliya, just outside Tel Aviv. But in a speech to Israel's parliament on Wednesday, staunchly pro-Israel Milei said he was 'proud to announce' his country will move its 'embassy to the city of west Jerusalem' in 2026. 'Argentina stands by you in these difficult days,' Milei said. 'Unfortunately, the same cannot be said about a large part of the international community that is being manipulated by terrorists and turning victims into perpetrators,' he told the Knesset. The Argentinian leader, currently on his second state visit to Israel since taking office in 2023, said Buenos Aires will continue to demand that Israeli captives held in Gaza be released, including four with Argentinian citizenship taken during the Hamas-led October 7, 2023, attack. Milei also criticised Swedish activist Greta Thunberg, who was detained and deported by Israeli authorities this week after being taken with other activists from a Freedom Flotilla Coalition ship attempting to break Israel's naval blockade on Gaza. Thunberg has been a vocal critic of Israel's war crimes in Gaza and deliberate starvation of the territory's Palestinian population. '[Thunberg] became a hired gun for a bit of media attention, claiming that she was kidnapped when there are really hostages in subhuman conditions in Gaza,' Milei said, according to a translation of his remarks from Spanish provided by the Knesset. Israel is facing mounting international pressure over the dire humanitarian situation in Gaza, with the overall death toll after more than 20 months of war surpassing 55,000 Palestinians. Milei had pledged to move Argentina's embassy during his first visit in February 2024, in which he also prayed at the Western Wall, a revered religious site for Jews in Jerusalem. Speaking in advance of Milei's address to parliament this week, Prime Minister Netanyahu said 'the city of Jerusalem will never be divided again'. The status of Jerusalem is one of the most delicate issues in the Israel-Palestinian conflict, with Israel claiming the entirety of the ancient city as its capital, while Palestine claims its occupied eastern sector as the site of any future Palestinian state. Israel first occupied East Jerusalem during the 1967 Six-Day War, before unilaterally annexing it in 1980 in a move rejected by the United Nations Security Council. Due to its disputed status, the vast majority of the 96 diplomatic missions present in Israel host their embassies in the Tel Aviv area to avoid interfering with peace negotiations. Currently only six countries – Guatemala, Honduras, Kosovo, Papua New Guinea, Paraguay and the United States – have embassies located in West Jerusalem. During his first term in 2017, President Donald Trump made the shock decision to unilaterally recognise Jerusalem as Israel's capital before moving the US embassy there a year later, prompting Palestinian anger and the international community's disapproval. This status was not revoked under the Biden administration and Washington continues to recognise Jerusalem as Israel's capital today.
