FX.co ★ Argentina Inflation Hits Five-Year Low

In Argentina, consumer prices saw a month-on-month increase of 1.5% in May 2025. This marks a slowdown from the 2.8% jump observed in April, recording the lowest monthly inflation rate since May 2020 and falling below market predictions of a 2.0% rise. While prices continued to climb, the rate of increase decelerated, most notably in categories such as food and non-alcoholic beverages, which rose by 0.5% compared to April's 2.8%, clothing and footwear at 0.9% down from 3.8%, and transportation which edged up by only 0.4% versus the previous 1.7%. Smaller slowdowns were also noted in education, which settled at 1.9% from 2.5%, and in the restaurant and hotel sector, which cooled to 3.0% from 4.1%. Conversely, the pace of price increases picked up in the communications sector, reaching 4.1% from 2.8%, and showed modest upticks in housing and utilities at 2.4% against 1.9%, and in health, advancing to 2.7% from 2.5%. When looked at year-on-year, consumer prices have risen by 43.5%, marking a year-long trend of disinflation and presenting the smallest rise since March 2021, lower than the 47.3% recorded last May and forecasts of 44.2%.