Monthly inflation has gone from 25% to around 4%. This is obviously good, but there are two small notes of concern.
First, the 25% number was just one really bad month. Inflation has been around 4% for most of the past five years. The pre-Milei government really ramped up the money printer a few months ago, increasing the numbers to 10% for a few months, and finally 25% in the worst last month. Milei was able to get it down to its normal base of 4%, but I think she was hoping to lower it. So far it has been stubborn and stayed at 4% in the spring and summer.
Second, even 4% monthly inflation is bad. 4% per month = 60% per year. Remember, the United States briefly had 9% inflation every year after COVID and people were angry. Argentina’s “good” “advanced” inflation is still 7x that.
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