The inflation scenario in Argentina has worsened recently, as a political crisis between President Javier Milei's administration and the National Institute of Statistics and Censuses (Indec) led to the suspension of a much-anticipated new methodology for calculating inflation. While Indec aimed to release updated inflation data reflecting current economic conditions, the decision was halted following tensions over governance and oversight of the institution. This situation has raised concerns about the transparency and accuracy of inflation reporting in Argentina, exacerbating public anxieties about the economy.

On February 10, Indec released traditional Consumer Price Index (CPI) figures, revealing a monthly inflation rate of 2.9% in January, slightly higher than the previous month’s 2.8%. Over the past year, inflation surged to 32.4%. These figures, however, came in the wake of significant controversy and protests within Indec regarding its ability to provide accurate and timely economic indicators amidst political interference. As a result, the publication of revised statistics, which would have presented a clearer and more current picture of inflationary trends, remains awaited.

The most notable contributing factor to the rising inflation rate was observed in the food and beverage sector, which experienced an increase of 4.7%, driven mainly by soaring prices of meat, vegetables, and legumes. Additionally, the restaurant and hotel sector recorded a rise of 4.1%. As economic challenges intensify, the Milei government's approach to managing the crisis surrounding Indec could have critical implications on public trust, investment decisions, and overall economic stability moving forward.