Milei’s Economic Miracle: How Argentina Slashed Inflation to 1.5% (Emmanuel Rincon, July 2, 2025, Daily economy)
Milei’s first step was balancing the budget. Through an aggressive program of public spending cuts, eliminating bureaucracy, and reducing public sector jobs, he erased Argentina’s massive fiscal deficit, paving the way for a historic economic recovery. Under his leadership, Argentina began taming inflation with rare fiscal discipline, not just regionally but globally. The latest data is astonishing: in May 2025, the consumer price index rose by just 1.5 percent, the lowest in five years. Remarkably, Milei achieved this without price controls but by liberalizing the economy, fostering market confidence, and slowing inflation. Annual inflation dropped from 211.4 percent in 2023 to 43.5 percent by mid-2025. Wholesale prices even fell by 0.3 percent in May, the best figure in 17 years. Poverty also declined sharply, from 52.9 percent in the first half of 2024 to 38.1 percent in the second, with UNICEF noting that 1.7 million children were lifted out of poverty since Milei took office.
These achievements were no fluke. They stemmed from a clear strategy: fiscal balance, reduced public spending, ending monetary expansion as a financing tool, and economic deregulation. The result? Greater stability, increased demand for the peso, falling inflation, and a rebound in employment and purchasing power.
That was easy enough.