Fact Check: "Argentina's monthly inflation rate drops to 1.5% – lowest level in five years."
What We Know
In May 2025, Argentina's monthly inflation rate decreased to 1.5%, marking the lowest level since May 2020. This drop is significant as it is the first time in nearly five years that the monthly inflation rate has fallen below 2%. The National Institute of Statistics and Censuses (INDEC) reported that consumer prices rose by 1.5% in May, a decrease from 2.8% in April and 3.7% in March (source-1, source-2).
The annual inflation rate, however, remains high at 43.5%, down from 211% at the end of 2023 when President Javier Milei took office (source-3). The largest price increases in May were seen in the categories of restaurants and hotels (up 3%), communications (up 4.1%), and housing, water, and electricity (up 3.1%) (source-2).
Analysis
The claim that Argentina's monthly inflation rate has dropped to 1.5% is supported by multiple credible sources, including the INDEC, which is the official statistics bureau of Argentina. The reported figure aligns with the broader economic context, where President Milei's administration has implemented significant economic reforms aimed at stabilizing the economy and curbing inflation (source-1, source-6).
While the drop to 1.5% is a positive development, it is essential to note that the annual inflation rate remains substantially high, indicating ongoing economic challenges. The government's austerity measures, which include significant cuts to public spending and the elimination of inflation-aligned pension increases, have contributed to this decline in monthly inflation (source-3, source-7).
Despite the positive monthly figure, there are concerns about the overall economic health, including stagnant wages and purchasing power, which have not kept pace with inflation (source-2). This suggests that while the administration's measures are having an immediate effect on inflation rates, the broader economic recovery remains fragile.
Conclusion
Verdict: True
The claim that Argentina's monthly inflation rate has dropped to 1.5%, the lowest level in five years, is accurate based on reliable data from INDEC and corroborated by multiple news sources. The significant decrease from previous months reflects the impact of President Milei's economic policies, although the high annual inflation rate and other economic challenges indicate that the situation remains complex.
Sources
- Argentina inflation tumbles to five-year-low 1.5% in boost ...
- Monthly inflation drops to 1.5% – lowest level in five years
- Argentina's Inflation Drops to 1.5% in May, Lowest in Five ...
- Argentina Inflation Rate MoM
- Argentina's monthly inflation falls to 1.5%, the lowest in 5 ...
- Javier Milei lowers Argentina's monthly inflation below 2% ...
- Argentina sees monthly inflation dipping to 5-year low
- Argentina's President Javier Milei's strong economic ...