Argentina's consumer prices increased 2.6% in April compared with March, according to data released by the national statistics agency Indec. The monthly rise represents the first slowdown in inflation in 11 months.
The 2.6% reading came in a hair above the 2.5% median forecast from economists surveyed by Bloomberg. On an annual basis, inflation edged down to 32.4% in April from 32.6% in March.
Transport-related costs recorded the largest monthly gain at 4.4%, with higher fuel costs cited as the primary driver of that category. Education was the next-largest contributor to the monthly increase.
Policy and price dynamics in recent months help explain the shift. Prices had jumped in March to 3.4% month-on-month, a move linked in part to an oil shock tied to the Iran war and to back-to-school price adjustments. The April slowdown therefore marks a partial easing from that spike.
Economy Minister Luis Caputo, speaking in an interview before the release of the April numbers, said the data would show a slowdown compared with March. He also indicated that the economy's strongest months would come in June, following last year's midterm elections that had reduced growth.
Monthly readings had earlier registered a seven-year low of 1.5% in May 2025; after that point, prices either rose or remained flat in subsequent months until the April slowdown.
The reduction in the pace of monthly inflation arrives amid political headwinds for President Javier Milei. Milei achieved the slowdown after the sharper price increases in March, but his approval ratings have recently fallen to their lowest levels since he took office, driven by corruption scandals and an uneven economic recovery. The easing of inflation may have implications for his public standing.
Implications for markets and sectors
- Transport sector: higher fuel-related costs were the main driver of the largest monthly category increase.
- Education sector: continued upward pressure on school-related prices contributed materially to monthly inflation.
- Broader consumer prices: the moderation from March's spike may influence short-term expectations for households and businesses.
Data limitations
The official release provides the headline monthly and year-on-year rates and the category breakdowns noted above. Public commentary from Economy Minister Luis Caputo projected a moderation and pointed to stronger months ahead in June; beyond those statements and the figures reported by Indec, the data do not provide further causal detail on pass-through dynamics or distributional effects.