Argentina May inflation slows for second straight month to 2.1%, below forecasts

BUENOS AIRES - Argentina recorded slower inflation in May for the second month in a row, below analyst forecasts, even as the 12-month figure increased, data from national statistics agency INDEC showed on Thursday.

May's inflation rate of 2.1% was down from 2.6% registered in April and came slightly under analyst expectations of 2.3%.

In the 12 months through May prices rose 33.2%, climbing from the previous month's rate of 32.4%.

May's inflation was underpinned by seasonal prices that grew 3.5%, led by vegetables, INDEC said. Fuel, electricity, and water costs also saw a bump, rising 2.4%.

Communications and education prices rose 3.4% and 2.9% respectively versus the month before.

The smallest increases were seen in alcoholic beverages and tobacco, up 0.8%, and clothing and footwear, which rose 0.3%.

On Wednesday, a Reuters poll showed analysts expected Argentina's monthly inflation to cool for the second month running in May, despite predicted rises in year-on-year inflation.

Economy Minister Luis Caputo has said that the annual trajectory of consumer prices would fall to around 20% in coming months if the economy avoided new disruptions.

President Javier Milei's early progress in curbing inflation lost momentum in 2025, as uncertainty surrounding the mid-term elections began to weigh on the economy.

(Reporting by Hernan Nessi and Jorge Otaola, Editing by Daina Beth Solomon)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published June 11, 2026 at 12:44 PM.