Argentina's May Inflation Expected Lower Than April

Argentina's May Inflation Expected Lower Than April

Economy Minister Luis Caputo announced on Thursday that Argentina's inflation rate in May will be lower than in the previous month, without providing further details. Monthly inflation in April was 2.6%, down from 3.4% in March, according to INDEC data.

Inflation Outlook and Tax Cuts

Caputo stated that inflation is expected to be around 20% over the next 12 months, with no major shock anticipated. The government of President Javier Milei will continue reducing taxes as the economy achieves sustained growth.

"If we manage to grow the economy at 6%, 7%, or 8% for the next few years, the most distortionary taxes will be gone in two years," he said. Caputo highlighted 38 projects totaling about $124.1 billion submitted to the Large Investment Incentive Regime (RIGI), many of which are expected to be approved soon to generate growth, jobs, and foreign currency.

The minister emphasized that investments are reaching the country, adding, "By 2031, the mining and energy sector's trade balance will reach $60 billion."