Inflation in Argentina accelerated in March to +3.4%, the highest monthly index in almost a year, a surge attributed by authorities to the external shock of the Middle East war and its impact on fuel prices.
The price increase in March, released on Tuesday by the National Institute of Statistics (Indec), confirms a slow but steady rise since mid-2025, when inflation stood at 1.5% in May, the lowest level in five years.
Despite this tenth consecutive month of increase, inflation reaches 32.6% over twelve months, remaining on a downward trend for two years under the ultraliberal government of Javier Milei. Last year at the same time, the annual inflation was 55.9%. And 161% since he took office in late 2023.
In March, “we witnessed a significant impact from the Middle East war, in line with effects observed in other countries,” Economy Minister Luis Caputo argued on X after the index was released.
“Obviously, this (war) had an impact on everything related to oil, from airline tickets to transportation,” he said on Monday. Mentioning also “seasonal factors,” the March back-to-school season typically sees a surge in education expenses.
“We are not pleased with this number, as inflation sickens us,” Javier Milei tweeted. But he cited “solid elements” to explain it and hoped that “inflation returns to its downward trajectory.”
After two years of draconian budget austerity that improved public finances but harmed economic activity and employment, Javier Milei – in a rare move – acknowledged last week that “the last few 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% on a yearly basis 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 hell to have 30% poverty,” the president said on the public channel, claiming nonetheless a decrease in poverty over the past year according to official figures. And urging “patience.”
“The direction is right. Changing it would destroy everything that has been achieved,” he emphasized.
