{"id":224074,"date":"2026-05-15T04:36:31","date_gmt":"2026-05-15T04:36:31","guid":{"rendered":"https:\/\/teknomers.com\/en\/inflation-slowdown-expected-to-continue-in-may-yet-remains-far-from-2\/"},"modified":"2026-05-15T04:36:33","modified_gmt":"2026-05-15T04:36:33","slug":"inflation-slowdown-expected-to-continue-in-may-yet-remains-far-from-2","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/inflation-slowdown-expected-to-continue-in-may-yet-remains-far-from-2\/","title":{"rendered":"Inflation Slowdown Expected to Continue in May, Yet Remains Far from 2%"},"content":{"rendered":"\n
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Inflation registered a slowdown after ten months of upward trend. (Sarah Pabst\/Bloomberg)<\/figcaption><\/div>\n

Recent Trends in Inflation<\/h2>\n

April saw a significant change in inflation data, marking the first decline in 10 months<\/strong>. As expected, a continued downward trend is projected for May; however, breaching the 2% mark<\/strong> this month appears doubtful. The reported monthly decrease of 2.6%<\/strong> aligns closely with market predictions, although some analysts had anticipated a more substantial drop.<\/p>\n

Optimistic Indicators<\/h3>\n

Two key factors contributing to this optimism are the 1.5% increase in food and beverage prices<\/strong>, well below previous months, and a 2.3%<\/strong> rise in core inflation (excluding regulated and seasonal prices), which is lower than general inflation. This represents the lowest core inflation figure since October.<\/p>\n

Economist Maria Castiglioni<\/strong> noted, \u201cthe data from the C&T price survey so far in May indicate moderation,\u201d attributing part of this to the conclusion of seasonal peaks for education and clothing. Furthermore, ongoing sales events, such as the \u201cHot Sale,\u201d alongside minimal adjustments in fuel pricing, could push May\u2019s inflation closer to 2.2%<\/strong>, with some analysts estimating a range of 2% to 2.1%<\/strong>.<\/p>\n

Challenges Ahead<\/h2>\n

Despite the progress, institutions like Adcap warn that while the national data from April showed some improvement, it does not signal a strong convergence towards 2%<\/strong>. The upcoming phase of disinflation may become increasingly complex, as price adjustments and indexation inertia limit the pace of decline.<\/p>\n

Additionally, a report from LCG highlighted a 0.8% drop<\/strong> in food prices during the second week of May, reinforcing expectations for a slowdown this month. The restrictive measures from YPF\u2014the fuel company\u2014have also mitigated potential inflation spikes, with only a 1%<\/strong> increase in fuel costs and a freeze on prices for the upcoming 45 days.<\/p>\n

Government Efforts<\/h3>\n

The government is actively working to foster further reductions by stabilizing the exchange rate and reducing the monetary base by 5%<\/strong> year-to-date, despite facing an accumulated 12%<\/strong> inflation rate. In real terms, this results in approximately 17%<\/strong> fewer pesos circulating compared to the end of 2025.<\/p>\n

These inflationary trends raise questions about the potential for a remonetization plan<\/strong> in the economy. For effective implementation, the Central Bank may need to buy dollars without withdrawing the pesos from circulation, a strategy previously discussed in the context of their monetary policy yet not executed due to ongoing inflation concerns.<\/p>\n

Impact on Real Wages<\/h2>\n

Should inflation continue to decrease, a concurrent improvement in real wages is anticipated. Both public employees and workers in various sectors experienced wage reductions earlier this year, thus the potential rebound in purchasing power could positively influence economic stability.<\/p>\n<\/div>\n


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General News – 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Inflation registered a slowdown after ten months of upward trend. (Sarah Pabst\/Bloomberg) Recent Trends in Inflation April saw a significant change in inflation data, marking the first decline in 10 months. As expected, a continued downward trend is projected for May; however, breaching the 2% mark this month appears doubtful. The reported monthly decrease of […]<\/p>\n","protected":false},"author":1,"featured_media":224075,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[17715,9699,28292,52464,35544,1057,52465,1834,1593,2360,52466,3346,52467,1994,15036,52468],"class_list":["post-224074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mazagine","tag-americas","tag-argentina","tag-argentinian","tag-blue-chip-swap","tag-business-news","tag-continue","tag-economic-news","tag-economy","tag-expected","tag-inflation","tag-latam","tag-latin","tag-parallel-exchange-rate","tag-remains","tag-slowdown","tag-south-american"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/224074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=224074"}],"version-history":[{"count":1,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/224074\/revisions"}],"predecessor-version":[{"id":224076,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/224074\/revisions\/224076"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/224075"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=224074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=224074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=224074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}