The effect of reforming the government in Milay, Argentina...Annual inflation 211% → 117%

Inflation, considered South American Argentina's biggest headache, has fallen by nearly 100 percentage points in a year since the implementation of the reform policies of the Javier Milay government, the report showed.

Argentina's central bank said its benchmark annual inflation rate was 117.8% last month, down 93.6 percentage points from 211.4% in December 2023, showing a marked slowdown.

"In a year, inflation has been powdered," Argentina's Ministry of Economy said. "In the first year of President Milley's presidency, reasonable economic policies were established and the foundation for steady growth was laid."

In line with that, Argentina's central bank has decided to scale back its "crawling peg" system, which meets its inflation target but deliberately adjusts the exchange rate to minimize the shock of the exchange rate market.

Mr. Milay, who took office in December 2023, carried out shock therapy at the start of his term, such as devaluing the local currency, the peso, to half its value, reducing government employees and drastically reducing social subsidies.

The ensuing recession has led unions, retirees and college students to protest, but Milay has dismissed criticism, saying "the prices that have plagued the people for decades will soon fade into unpleasant memories."