Argentina May inflation slows for second straight month to 2.1%, below forecasts

BUENOS AIRES, June ‌11 (Reuters) - Argentina ​recorded ​slower inflation in May for the second month in a row, below analyst forecasts, ‌even as the 12-month figure increased, data from ⁠national statistics agency INDEC showed on Thursday.

May's inflation rate ‌of 2.1% was down from ‌2.6% registered in April and came slightly under analyst expectations of 2.3%.

In the 12 months through ​May prices rose 33.2%, climbing from the previous month's rate of 32.4%.

May's inflation was underpinned by ⁠seasonal prices that grew 3.5%, led by vegetables, INDEC said. Fuel, electricity, ​and water costs also saw a bump, rising 2.4%.

Communications and education prices rose 3.4% ​and 2.9% respectively versus the ‌month before.

The smallest increases were seen in alcoholic beverages and tobacco, up 0.8%, ⁠and clothing and footwear, which rose 0.3%.

On Wednesday, a Reuters poll showed analysts expected Argentina's monthly inflation to ⁠cool for the second month running in May, despite predicted rises ​in year-on-year inflation.

Economy Minister Luis Caputo has said that the annual trajectory of consumer prices would fall to around ‌20% in coming months if the economy avoided new disruptions.

President Javier Milei's early ‌progress in curbing inflation lost momentum in 2025, as ⁠uncertainty surrounding the mid-term ‌elections began to ​weigh on the economy.

(Reporting by Hernan Nessi and Jorge Otaola, Editing by Daina Beth ‌Solomon)

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