Argentina Inflation Falls to 1.7 Percent, Lowest in 14 Months

Argentina's consumer prices rose 1.7% in August, marking the lowest monthly reading since June 2025 and the lowest for August since 2017, according to the national statistics agency INDEC. Annual inflation softened to 33.5%, and prices were up 21.3% so far in 2026. Core inflation, excluding seasonal and regulated items, stood at 1.8%.

The figure matched the central bank's forecast, which predicted 1.7% for August. Housing and utilities led the increase, with a 2.8% rise, followed by education at 2.5% and health at 2.4%. Food and non-alcoholic beverages accounted for the largest portion of the monthly increase at 1.7%. The Economy Ministry hailed the inflation level as "the lowest of the last 14 months" and President Javier Milei praised his economy minister, "¡Vamooo Toto!"

The government is celebrating the disinflation, but skeptics remain watchful over the peso, foreign reserves, and the year-end forecast, which still hovers near 30%. The August increase reflects a significant disinflation in a country that saw monthly inflation above 25% when Milei took office in December 2023. The government's claims were supported by the central bank's REM survey, which projected exactly 1.7% for August.

However, the disinflation's sustainability remains a concern, with risks including the exchange-rate lag, thinning foreign reserves, and ongoing tariff adjustments.