Inflation in the City dropped again to 1.8% and reinforces the slowdown driven by Milei

Inflation in the City of Buenos Aires was 1.8% in June, according to the Buenos Aires Statistics and Census Institute (IPCBA), confirming a new deceleration of prices and strengthening expectations regarding the national data that INDEC will release in the coming days.

The figure represents a decrease from the 2.1% in May and constitutes the third consecutive monthly deceleration, in line with the stabilization process that the government of Javier Milei has been promoting since the beginning of his administration.

In year-on-year terms, the Buenos Aires inflation stood at 32.6%, while the accumulated figure for 2026 reached 16%, well below the levels inherited by the current administration.

Macroeconomic stability continues to yield results

The new drop in the IPC reflects the impact of the economic program based on fiscal balance, monetary order, and the elimination of issuance to finance the deficit, which are central axes of the management of President Javier Milei and Economy Minister Luis Caputo.

Private data had already anticipated inflation close to 1.8% for June, so the Buenos Aires result strengthens the expectation that the national index will also continue to decline.

In recent months, the government has managed to maintain exchange rate stability, reduce country risk, and advance in a strong recovery of economic activity, while inflation continues to lose momentum.

Which sectors drove the increases

In June, goods increased by 1.5%, while services recorded a rise of 2%.

Among the main divisions, the following stood out:

• Housing, water, electricity, and gas: 2.2%

Within food, the largest increases corresponded to vegetables (5.9%), baked goods (2%), and dairy products (1.7%), while meats barely increased by 0.6% during the month.

In contrast, clothing and footwear was the only category that recorded a decrease, with a variation of -0.7%.

The data strengthens expectations for the national IPC

The city's index often anticipates the trend of the national data published by INDEC.

With a Buenos Aires inflation of 1.8%, private consultancies increasingly consider it likely that the national IPC will also be below 2%, consolidating the path of deceleration initiated after the peak recorded in March.

The government hopes that the combination of fiscal discipline, financial surplus, monetary stability, and deregulation will continue to reduce inflation during the second half of the year, after having managed to reverse an inflationary dynamic that for years affected the purchasing power of Argentines.

The new drop in the Buenos Aires IPC represents further support for the economic direction of Javier Milei's administration, which maintains as its main objective the consolidation of price stability and the recovery of sustained growth of the Argentine economy.