BUENOS AIRES (Reuters) -Argentina’s monthly inflation rate cooled to its lowest level in more than five years in May, official data showed on Thursday, adding momentum to President Javier Milei’s drive to rid the country of chronically soaring prices.
Prices during the month rose just 1.5% from the month before, national statistics agency INDEC said, well below the 2.0% estimate from analysts polled by Reuters.
Monthly inflation has not been so low since May 2020, when much of the economy was paralyzed by pandemic lockdowns.
Thursday’s monthly inflation data is the lowest yet for libertarian Milei, whose economic policies have helped bring down triple-digit inflation and inspire confidence in investors and the International Monetary Fund, which recently approved a $20 billion loan package.
“Everything is going according to plan,” said Finance Secretary Pablo Quirno on X.
In the 12 months through May prices rose 43.5%, slowing from the previous month’s 47.3% rate and below the 44.2% rate predicted by analysts.
Analysts polled by the central bank see annual inflation falling to 28.6% by the year’s end.
(Reporting by Hernan Nessi, Kylie Madry and Walter Bianchi; Writing by Brendan O’Boyle)
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