Argentina’s Inflation Rate Increases to 2.4% in February Amid Economic Challenges

Argentina’s inflation rate rose to 2.4% in February, aligning with predictions, as housing and public service costs increased. Yearly inflation reached 66.9%, showing improvements from earlier in the year. President Javier Milei’s administration has made strides against inflation but faces ongoing challenges due to austerity measures.

Argentina’s inflation rate increased to 2.4% in February, matching analyst expectations according to data from the INDEC statistics agency. This uptick marks an increase from January’s 2.2%, largely driven by a nearly 4% rise in housing and public services costs. On a year-over-year basis, inflation reached 66.9%, down from 84.5% the previous month but slightly above analysts’ predictions.

The current administration of libertarian President Javier Milei has made efforts to control rampant inflation, which had previously surged to nearly 300% early last year. Although there has been a notable reduction in inflation to double digits, the rate has stagnated around 2%-3% in recent months. An analyst from Max Capital mentioned expectations for March inflation to be near 2%, although early March data indicates a potential increase compared to February.

Milei’s government is attempting to address economic issues, navigating public discontent due to strict austerity measures, which have led to significant protests. The administration is now considering the relaxation of capital controls. Economists predict further declines in inflation, with forecasts suggesting a decrease to 23.3% by the end of 2025.

In conclusion, Argentina’s inflation rate saw a rise to 2.4% in February, despite efforts by President Javier Milei’s administration to combat inflation, which had previously reached alarmingly high levels. While inflation remains in double digits and predictions indicate a potential decrease in the coming years, the economic situation continues to pose challenges, especially in light of austerity measures and public unrest.

Original Source: money.usnews.com