Updated
Updated · The Associated Press · Jun 11
Argentina Inflation Slows to 2.1% in May as S&P Lifts Sovereign Rating to B-
Updated
Updated · The Associated Press · Jun 11

Argentina Inflation Slows to 2.1% in May as S&P Lifts Sovereign Rating to B-

3 articles · Updated · The Associated Press · Jun 11

Summary

  • Consumer prices rose 2.1% in May from April, Argentina’s lowest monthly inflation in eight months and a second straight slowdown that gave President Javier Milei a political boost.
  • S&P Global late Wednesday upgraded Argentina’s sovereign rating to stable B- from the CCC category, citing the government’s success in meeting debt repayments and reinforcing Milei’s push to reopen access to global capital markets.
  • Annual inflation still edged up to 33.2%, while food prices accelerated 2.5% and communications costs climbed 3.4%, underscoring how living costs continue to outpace wages.
  • Milei’s deregulation and austerity have produced a rare budget surplus and cut inflation from above 200% when he took office, but layoffs, weak retail and manufacturing activity, and corruption probes remain a drag on public support.

Insights

As investors celebrate Argentina's rebound, are its citizens paying too high a price?
Can Milei's reforms break Argentina's historic cycle of economic boom and bust?