The National Institute of Statistics and Census of Argentina (INDEC) announced on Wednesday afternoon that it measured an inflation rate in Argentina of 4.2 percent in August.
INDEC published its latest detailed monthly report at 4:00 p.m. (local time) on Wednesday, explaining that the 4.2-percent inflation rate in August is the average obtained from several categories, with clothing and footwear registering the lowest inflation at 2.1 percent. Housing, utilities, and fuel experienced the highest variance at 7.0 percent.
Immediately upon taking office in December 2023, President Javier Milei implemented a series of “shock therapy” measures to overturn Argentina’s multi-year long severe economic difficulties — which dramatically worsened during the administration of socialist former President Alberto Fernández (2019-2023) — as well as to avert a hyperinflation spiral that the nation was on track to fall into as a result of Fernández’s disastrous policies.
Since then, the inflation rate has consistently lowered from December’s 25.5 percent to May’s 4.2 percent, and hovered at around four percent in the following months. In June, Argentina experienced a slight increase in its inflation rate, going up to 4.6 percent, dropping down to four percent in July — the lowest measured rate in two and a half years.
The Argentine newspaper La Nación reported on Wednesday afternoon that, according to market estimates, Argentina’s total 2024 inflation will be measured between 122.9 and 123.7 percent — representing a 90-point decrease from the total 211 percent inflation measured at the end of Fernández’s presidency in 2023.
The Argentine Integrated Pension System announced this week that private sector wages have caught up to inflation and have recovered the purchasing power lost from the devaluation carried out by Milei as part of his shock therapy measures.
The official announcement of August’s inflation rates by the Argentine statistics institute comes days before the Argentine government’s presentation of the national budget proposal for the year 2025, which will reportedly be in line with Milei’s “Zero Deficit” fiscal goal.
Presidential spokesman Manuel Adorni announced on Tuesday that Milei will personally present the 2025 national budget proposal to Congress, marking the first time that an Argentine president does so. The task is usually carried out by the minister of economy.
Milei confirmed the announcement shortly afterwards.
“On Sunday, September 15 at 9:00 pm I will present the National Budget under the Zero Deficit rule in the Argentine National Congress. I invite you to witness a historic milestone that will mark a before and after in Argentine economic history,” Milei said, before closing with his widely famous catchphrase, “Long live liberty, damn it!”
Prior to Tuesday’s official confirmation, Milei had expressed his intention to present the budget in remarks given during his participation at the latest gathering of the conservative Madrid Forum in Buenos Aires, Argentina.
“I will soon be going to Congress to explain the foundation of the zero deficit, to end once and for all the cancer that is the fiscal deficit, the fiscal crises and the macro disaster that has plunged Argentina into poverty,” Milei said last week.
Christian K. Caruzo is a Venezuelan writer and documents life under socialism. You can follow him on Twitter here.