By Sarah Morland and Walter Bianchi
BUENOS AIRES (Reuters) -Argentina’s monthly inflation rate slowed more than expected to 2.8% in April, data from national statistics agency INDEC showed on Wednesday, though residents continue to struggle with the South American nation’s ever-rising costs.
The rate came in below analysts’ forecast of 3.1% and marked a slowdown from the 3.7% recorded in March.
Inflation in the 12 months through April hit 47.3%, slowing from the previous month’s 55.9% rate, and a touch below the rate of 47.7% rate predicted by analysts polled by Reuters.
“The data reflects the strong deceleration that inflation has been recording since the start of President Javier Milei’s mandate,” Argentina’s Economy Ministry said in a statement.
Central bank vice president Vladimir Werning had predicted a day earlier the slowdown should continue in May.
While Argentina’s monthly inflation rates have come down dramatically under Milei’s administration, cuts to state spending have also hit pensions and infrastructure projects, while state workers have seen salaries dwindle.
The cuts have also fueled large-scale strikes and protests, while many citizens continue to struggle to make ends meet.
“Prices continue to go up, especially food,” Buenos Aires resident Marcelo Medina, 60, told Reuters earlier on Wednesday. “The cost of living is very expensive and you can see that salaries are not keeping up with prices, they’re lagging behind.”
While restaurant and hotel costs led the monthly increases, home maintenance and equipment tracked the lowest. Food and non-alcoholic drinks just surpassed the total national level at 2.9%, while rent and utilities came in below at 1.9%.
“I’m surprised,” said 74-year-old retiree Gloria Nochetti, speaking from an outdoor market. “If (prices) increased, they increased by just a little.”
“I’m delighted, today I received my pension and I’m able to go grocery shopping.”
Milei’s government in mid-April lifted a currency control that had restricted the purchase of foreign currency, and implemented a divergent floating exchange band set between 1,000 and 1,400 pesos per dollar.
Analysts polled by Reuters earlier this month predicted monthly inflation could further slow to 2% in the second half of 2025, while a recent central bank market expectations survey predicted inflation would slow to 2% in July and 1.8% by August.
The survey predicted inflation would end the year at 31.8%.
Earlier this week, Milei said there could be “no more inflation” in Argentina by the middle of next year.
(Reporting by Sarah Morland and Walter Bianchi; Additional reporting by Horacio Soria; Editing by Kylie Madry and Alistair Bell)
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