Argentina Inflation Drops to 1.9 Percent in September
President Javier Milei's austerity measures reduced September inflation to 1.9 percent, though the country faces a potential technical recession due to economic contraction.
Javier Milei oversaw a second consecutive month of inflation below 2 percent, with September rates rising 1.9 percent. Government data published Tuesday shows annual inflation has decreased to 33.4 percent, a significant drop from the triple-digit levels recorded three years ago.
Price increases were primarily driven by education and utilities, while food costs remained slightly above the headline figure. The president has pursued this trend through a combination of tight monetary policy, fiscal austerity, and a stronger exchange rate.
These measures have hindered economic growth, leading to a contraction in the second quarter. Economists anticipate a further decline in the third quarter, which would signal a technical recession. Overall growth for 2026 is now projected at 1.5 percent, approximately half of initial investor expectations.
