Inflation fell to 1.7% in August, marking the lowest record for that month since 2017

The inflation slowed down again during August and deepened the downward trend that the price index has been showing thanks to the successful economic program of the Government of Javier Milei.

According to data from INDEC on the Consumer Price Index (CPI) National, the monthly inflation was 1.7%, compared to the 2.1% recorded in July, while the year-on-year variation stood at 33.5%, below the 33.8% of the previous month.

This figure represents a new favorable signal for the economic direction driven by the government of Javier Milei, which managed to bring monthly inflation back to its lowest level in 14 months. Additionally, it is the smallest increase recorded for a month of August since 2017.

With the result of August, the CPI accumulated a variation of 21.3% so far in 2026. The slowdown compared to July was also reflected in the inflation of recent months: the three-month moving average stood at 1.9%, which represented a reduction of 0.1 percentage points compared to the previous month and marked the fifth consecutive decline of this indicator.

Inflation by categories

The behavior of the different categories showed differences. The core inflation reached 1.8%, while regulated prices increased 2.2% and seasonal goods and services recorded a reduction of 0.9%.

Among the divisions that increased the most during August, Housing, water, electricity, gas and other fuels stood out, with an increase of 2.8%. In second place was Education, with an increase of 2.5%.

In contrast, Recreation and culture recorded no variation during the month, while Clothing and footwear fell by 0.6%. This last division accumulated its second consecutive decline and recorded its seventh nominal reduction in the last 20 months.

Increases in food also had a significant weight on the index. Food and non-alcoholic beverages was the division with the greatest impact on the monthly variation across the different regions of the country, registering a 1.7% increase, mainly due to the increases recorded in vegetables, tubers and legumes, fruits, and bread and cereals.

By regions, Northwest, Patagonia and Northeast had a monthly inflation of 1.8%, above the national average. Cuyo stood at 1.7%, while GBA and Pampeana recorded a variation of 1.6%.

The August data thus consolidates a new stage of price deceleration. In just one month, inflation dropped from 2.1% to 1.7%, while the year-on-year variation also continued to decrease, in line with the evolution of the index under Milei's economic management.