Inflation in Argentina accelerated in March to +3.4%, the highest monthly index in nearly a year, a resurgence attributed by authorities to the external shock of the Middle East war and its impact on fuel prices.
The rise in prices in March, released Tuesday by the National Institute of Statistics (Indec), confirms a slow but steady increase since mid-2025, when inflation was at 1.5% in May, the lowest level in five years.
Despite this tenth consecutive month of increase, inflation stands at 32.6% over twelve months, following a trend of disinflation over the last two years under the ultraliberal government of Javier Milei. Last year at the same time, the annual inflation rate was 55.9%. It was 161% upon his arrival in late 2023.
In March, the Minister of Economy, Luis Caputo, mentioned a significant impact of the Middle East war, in line with effects seen in other countries, after the index publication.
“Obviously, the war has had an impact on everything related to oil, from domestic flight tickets to transportation,” he anticipated on Monday. He also mentioned “seasonal factors,” with the March school start generally leading to a rise in education expenses.
“We are not pleased with this figure, as inflation disgusts us,” tweeted Javier Milei. However, he referred to “solid elements” to explain it and hoped that “inflation returns to its downward trajectory.”
Following two years of stringent budgetary austerity that improved public accounts but harmed economic activity and employment, Javier Milei, in a rare move, admitted last week that “the recent months have been tough” and that “economic improvement is not happening at the same pace for everyone.”
Among recent negative statistics, industrial activity dropped by 8.7% year-on-year in February, and informal work increased over two years, rising from 41.4% at the end of 2023 to 43% at the end of 2025.
“I’m not saying everything is fine, it’s hellish to have 30% poverty,” the president said on public television, claiming a decrease in poverty over the past year according to official information. He called for “patience.”
“The direction is right. Changing it would destroy everything that has been achieved,” he emphasized.
