Inflation in Argentina accelerated again in January and advanced for the fifth consecutive month, exposing the difficulties of Javier Milei's government to stabilize prices while deepening the fiscal adjustment. The consumer price index rose 2.9% in the month, above the median estimate of 2.4% gathered from analysts and slightly above the previous record, signaling a loss of momentum in the disinflation process.

The data was released by the statistics institute INDEC and reported by Bloomberg this Tuesday, with the accumulated rate over 12 months rising to 32.4%. The result adds to a political and institutional crisis: the resignation of the head of INDEC, Marco Lavagna, following disagreements with Milei over the change in the methodology of the indicator, postponed by the president at the moment it was to be implemented.

Increase falls on food, restaurants, and essential services

The acceleration in January hit essential expenses of the population hard. According to the cited numbers, food, restaurants, hotels, and public services led the increases of the month, reinforcing the direct impact on family budgets. By concentrating pressure on everyday items and regulated tariffs, the advance of the index amplifies social wear and increases the already existing perception of the failure of the Milei government.