In December 2023, President Javier Milei’s government enacted a Decree of Necessity and Urgency (DNU) which repealed the rental law, thus allowing greater flexibility in how rental contracts can be adjusted. This deregulation has led landlords and tenants to engage in negotiations regarding contract terms that reflect inflation, with the Consumer Price Index (CPI) becoming one of the most prevalent methods for these adjustments.

As a result of the repeal, many new rental contracts are now being established with durations of two years, typically denominated in Argentine pesos while incorporating adjustments linked to national inflation every three to four months. Some agreements are structured with alternative indexing options like the Index of Rental Contracts (ICL) or set in USD, which do not necessitate inflation adjustments, reflecting the varying preferences and economic strategies of different parties in a deregulated market.

This change poses significant implications for renters and landlords, as the shift towards CPI-based adjustments may lead to more volatile rental prices amidst fluctuating inflation rates. As the economy continues to evolve, both parties will need to navigate these newly established frameworks carefully to ensure fair and sustainable rental agreements in an unpredictable financial landscape.