Inflation is not going down: it has already been defeated

The data is on the table, but there are still those who are reluctant to see the obvious. The Domestic Wholesale Price Index (IPIM) registered an increase of just 1% per month in February, with a year-on-year variation of 25.6%. However, to stay in that annual number is to stay in the past. What is truly relevant is the dynamic that has already begun to unfold and which anticipates a much deeper change. Because inflation isn't a static photo, it's a process. And that process, in Argentina, has already changed.

When the monthly rate is around 1%, what we are seeing is not a simple slowdown, but a break with the previous inflationary logic. If the most recent dynamics are annualized, wholesale inflation runs to 13%, and if we take the two-month period, to 17%. These numbers are a far cry from the inflationary regime that dominated for years. This is not a transitory phenomenon or a stroke of luck: it is the direct result of having ended monetary issuance as a mechanism for financing the deficit

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For years, the Argentine State operated under a profoundly destructive logic: to spend without limits and to transfer the cost to society through inflation. This mechanism functioned as a covert, regressive and constant tax, which deteriorated wages, destroyed savings and disorganized the entire price structure of the economy. The broadcast wasn't an accident, it was the heart of the system. Therefore, when the emission is cut off, you are not attacking a symptom, but the very cause of the problem

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At this point, it is key to understand something that is often omitted in the analysis: prices don't all adjust at the same time. Inflationary dynamics follow a course. It first impacts production costs, then wholesale prices and finally retail prices. This is why the IPIM is not just another indicator, but rather an early signal. When wholesale prices begin to stabilize, what is being shaped is the future scenario of consumer inflation

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This implies that what we see today in wholesalers is, to a large extent, what we will see tomorrow in our pocket. The economy doesn't change overnight, but it does change direction.

And in this case, the direction is unequivocal: towards sustained disinflation.

But this phenomenon also has a dimension that goes beyond the technical aspect. Inflation is not simply a rise in prices, but the consequence of artificially expanding the amount of money. It is, in essence, a form of resource transfer without consent. In other words, it's a form of disguised expropriation.

Therefore, when issuance is eliminated as a financing tool, not only does a macroeconomic indicator improve. It ends with a systematic mechanism of social deterioration. Clearer rules are re-established, the pricing structure is ordered and the possibility of planning begins to be reconstructed. This has concrete effects: wages stop lagging behind prices, savings make sense and investment is once again possible.

It is true that the year-on-year figure still reflects the inflationary past. It was inevitable. Inflation has inertia, lags behind and is slow to disappear completely from the statistics. But to focus solely on that number is to not understand the ongoing process. The important thing is that the dynamic has already changed and that the structural cause of the problem has been attacked.

In this context, resistance is also expected to emerge. Inflation not only hurt the majority, it also benefited certain sectors that operated comfortably in disorder, discretion and price distortion. For those actors, stability is a threat. For the rest of society, on the other hand, it is an historic opportunity.

Price stability is not an end in itself, but rather the necessary condition for the economy to function, grow and generate prosperity.

Without stability, there is no economic calculation possible; without economic calculation, there is no investment; and without investment, there is no sustained growth.

Therefore, beyond the conjunctural discussion, what is happening is a change of regime. This is not a one-off improvement or a statistical rebound.

It's about having deactivated the main engine of inflation.

And in that sense, the conclusion is clear: inflation, at its root, has already been defeated. What we are seeing now is not their persistence, but their withdrawal

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