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Milei’s inflation fight stalls in Argentina

The final stretch of reining in price increases is likely to be difficult, warn economists

Javier Milei’s push to bring down Argentina’s chronic inflation is stalling, with the monthly rate hitting 3.4 per cent in March — its highest level in a year — as economists warn that tackling the final stretch could be far harder than halting the crisis at its peak.

Inflation has fallen sharply from the double-digit monthly rates Milei inherited when he became president in 2023. But the monthly rate bottomed out at 1.5 per cent in May and hit 2.9 per cent in both January and February.

“The number is bad. We don’t like it because inflation is repugnant to us,” Milei said after the latest numbers were published on Tuesday. “However, there are hard factors today that allow us to explain what has happened and, especially, to expect that going forward inflation will return to a downward path.”

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