Argentine Economy on the Rebound

Inflation Rate Slows Down to 132%

Central Bank's Policies Seem to be Working

Argentina's inflation rate has slowed down to 132% in February, according to the country's statistics agency. This is the second month of disinflation after eleven consecutive months of increases.

The consumer price index rose by 46% in June 2024 from the previous month, slightly accelerating from the 42% increase in May. However, prices rose at a rate of 88% last month, down from a monthly rate of 11%.

The Argentine government has been implementing a number of policies to try to bring inflation under control, including raising interest rates and cutting spending. These policies appear to be working, as the inflation rate has now slowed down for two months in a row.

The Central Bank of Argentina has raised interest rates by 500 basis points since the beginning of the year, and has also implemented a number of other measures to tighten monetary policy. These measures have helped to reduce the amount of money in circulation, which has led to a decrease in inflation.

The government has also cut spending by 5% in an effort to reduce the budget deficit. This has helped to reduce the amount of money that the government is borrowing, which has also led to a decrease in inflation.

The Argentine economy is still in a difficult position, but the recent slowdown in inflation is a positive sign. The government is hoping that by continuing to implement its current policies, it will be able to bring inflation under control and restore economic stability.