Argentina Sees Inflation Drop Below 5%, Signs of Economic Recovery

Argentina's Economy Minister Luis Caputo expects May inflation to fall below 5%, a figure slightly lower than analyst forecasts. Amidst austerity measures, signs of recovery are emerging across various sectors. Caputo emphasizes the need for reforms to continue fostering investment and economic growth.

Argentina's economy minister expects May inflation below 5%, he said on Sunday, slightly lower than analyst estimates, and noted that the government sees signs of recovery in several sectors. A recent survey of analysts by the central bank projected inflation of 5.2% in May and 5.5% for June.

"We believe that inflation in May will be below 5%," Minister of Economy Luis Caputo said in an interview with local television outlet La Nacion. "Lower inflation is essential for recovery." Inflation has decelerated in Argentina since the December inauguration of ultra-liberal President Javier Milei, but his austerity measures have caused the economy to shrink and forced more people into poverty.

Caputo said the economy showed signs of recovery in May. He also called for passing a reform package, ranging from plans to privatize state bodies to measures to encourage investment, which the Senate will debate next week. "There were signs of recovery in May in several sectors. Income and retirements are also recovering... The economy has turned around," Caputo said.