Key facts
- Argentina's May inflation rate was 2.1%, down from 2.6% in April and below the 2.3% forecast.
- The annual inflation rate through May rose to 33.2%.
- Communications and food prices saw notable increases in May.
- S&P Global upgraded Argentina's sovereign credit rating to B- from CCC.
Argentina's monthly inflation rate slowed to 2.1% in May, marking the second consecutive month of deceleration and falling below the 2.3% forecast. This figure is down from April's 2.6% rate. However, the annual inflation rate for the 12 months ending in May increased to 33.2%. Communications networks saw the largest price increases at 3.4%, followed by education costs, while food prices accelerated by 2.5%. President Javier Milei praised the economic data, which coincided with S&P Global upgrading Argentina's sovereign credit rating to B- from CCC, citing the government's success in meeting debt repayments. Milei's administration has implemented austerity measures and deregulation to combat high inflation and fiscal deficits, with the annual rate now at 33% compared to over 200% when he took office.