The INDEC report notes a sharp decline in its comparisons against December 2023, when it jumped to 25.5%, and against the annual increase of 211.4%.
Argentina's consumer price index (CPI) rose 2.7% in December and ended 2024 at 117.8%, the National Institute of Statistics and Census (INDEC) said on Tuesday, with the month-on-month figure in line with expectations by analysts according to a Reuters poll.
The report notes a sharp decline in its comparisons against December 2023, when it jumped to 25.5%, and against the annual increase of 211.4%.
“The Argentine economy closes 2024 with a notable inflationary slowdown, a milestone that marks a change of course after years of high price volatility. Official INDEC data confirm an annual inflation of 117.8%, a figure that, while still high, represents a significant reduction of almost 90 percentage points compared to 2023. This decrease far exceeds initial projections, reflecting the impact of the economic policies implemented by the Javier Milei administration,” noted Quasar Elizundia, Market Research Strategist at the Pepperstone brokerage.
According to INDEC, the division with the highest increase in December was housing, water, electricity, gas and other fuels (5.3%), due to increases in housing rent and related expenses and electricity, gas and other fuels. This was followed by the communication division (5.0%), due to increases in telephone and internet services.
Meanwhile, the division with the highest incidence at the general level was food and non-alcoholic beverages (2.2%) in five regions, due to increases in meat and derivatives, bread and cereals, and milk, dairy products and eggs; while in GBA, the highest incidence was recorded in restaurants and hotels (4.6%).
The two divisions with the smallest variations in December 2024 were clothing and footwear (1.6%) and home equipment and maintenance (0.9%).
For Eliziunda, the downward trend in inflation opens up an optimistic horizon for 2025. Projections for this calendar year point to a CPI close to 2% quarterly in the first months of the year, with inflation expectations for one year at around 30% and for two years at 20%. "These projections, although subject to the evolution of the global and local economic context, reflect a consolidation of the downward trend and a strengthening of the credibility of the economic strategy," he said.
Latin America's third-largest economy is facing a tough fight against rising prices based on a strict orthodox policy, including deregulation, implemented by ultra-liberal President Javier Milei since taking office 13 months ago.
