earlyretirement
Moderator
🇦🇷📉 Inflation in Buenos Aires City: 1.6% in May, the Lowest Figure in 5 Years
Inflation in the City of Buenos Aires (CABA) was 1.6% in May 2025, marking the lowest monthly figure in five years and breaking below the 2% threshold. This level of inflation had not been seen since July 2020, when the index also registered 1.6%.
Sustained slowdown: The May figure represents a clear deceleration compared to previous months: in April, inflation was 2.3%, and in March, 3.2%.
Year-on-year comparison: Over the last twelve months, accumulated inflation in Buenos Aires reached 48.3%.
Lowest level since 2020: The last time monthly inflation was at similar levels was in July 2020 (1.6%), and since then, such a low variation had not been recorded.
Main Sectors Driving May’s Inflation
According to the official report from the Buenos Aires City Statistics and Census Institute (Idecba), the sectors that contributed most to the price increase in May were:
☑️Housing, water, electricity, gas, and other fuels
☑️Health
☑️Information and communication
☑️Food and non-alcoholic beverages
☑️Education
In particular, the health sector rose by 2.3% due to increases in private health insurance and pharmaceutical products, while housing and transportation each increased by 2.1%, mainly due to rent adjustments and fuel prices.
In food and non-alcoholic beverages, the rise was 1.3%, with increases in meat, dairy, and baked goods, but declines in fruits and vegetables helped contain the overall increase.
The slowdown in inflation in Buenos Aires is due to several factors:
✅Moderation in goods: Goods rose by just 0.8% in May, while services increased by 2%, reflecting less pressure on basic products compared to regulated services or those linked to public tariffs.
✅Drop in seasonal prices: Seasonal prices had the sharpest monthly drop within the surveyed universe, helping to reduce the overall index.
✅National trend: The Buenos Aires figure anticipates a similar trend at the national level, where inflation for May is also expected to fall below 2%, according to government and private estimates.
🔭Outlook
The publication of this data in Buenos Aires is relevant because it often anticipates the price dynamics at the national level. The national government and various analysts expect that the Consumer Price Index (CPI) to be released by INDEC will also show inflation below 2% for May, thus consolidating the downward trend of recent months.
📣 1.6% inflation in Buenos Aires during May 2025 is the lowest monthly figure in five years, marking a shift in trend after several months of deceleration and generating positive expectations for the national measurement.
Inflation in the City of Buenos Aires (CABA) was 1.6% in May 2025, marking the lowest monthly figure in five years and breaking below the 2% threshold. This level of inflation had not been seen since July 2020, when the index also registered 1.6%.
Sustained slowdown: The May figure represents a clear deceleration compared to previous months: in April, inflation was 2.3%, and in March, 3.2%.
Year-on-year comparison: Over the last twelve months, accumulated inflation in Buenos Aires reached 48.3%.
Lowest level since 2020: The last time monthly inflation was at similar levels was in July 2020 (1.6%), and since then, such a low variation had not been recorded.
Main Sectors Driving May’s Inflation
According to the official report from the Buenos Aires City Statistics and Census Institute (Idecba), the sectors that contributed most to the price increase in May were:
☑️Housing, water, electricity, gas, and other fuels
☑️Health
☑️Information and communication
☑️Food and non-alcoholic beverages
☑️Education
In particular, the health sector rose by 2.3% due to increases in private health insurance and pharmaceutical products, while housing and transportation each increased by 2.1%, mainly due to rent adjustments and fuel prices.
In food and non-alcoholic beverages, the rise was 1.3%, with increases in meat, dairy, and baked goods, but declines in fruits and vegetables helped contain the overall increase.
The slowdown in inflation in Buenos Aires is due to several factors:
✅Moderation in goods: Goods rose by just 0.8% in May, while services increased by 2%, reflecting less pressure on basic products compared to regulated services or those linked to public tariffs.
✅Drop in seasonal prices: Seasonal prices had the sharpest monthly drop within the surveyed universe, helping to reduce the overall index.
✅National trend: The Buenos Aires figure anticipates a similar trend at the national level, where inflation for May is also expected to fall below 2%, according to government and private estimates.
🔭Outlook
The publication of this data in Buenos Aires is relevant because it often anticipates the price dynamics at the national level. The national government and various analysts expect that the Consumer Price Index (CPI) to be released by INDEC will also show inflation below 2% for May, thus consolidating the downward trend of recent months.
📣 1.6% inflation in Buenos Aires during May 2025 is the lowest monthly figure in five years, marking a shift in trend after several months of deceleration and generating positive expectations for the national measurement.
