Food prices curb inflation: prices have stabilized and there are signs of improved consumption.

May's inflation marked a new milestone in the Argentine economy : according to private estimates, the Consumer Price Index was below 2% monthly , with food leading the way in a slowdown unprecedented in recent years. For many consulting firms, this moderation represents a turning point that heralds a new era of stability.

The consulting firm LCG recorded a weekly increase of just 0.2% in the fourth week of May, and a cumulative monthly increase of just 0.1% in "Food and Beverages." Among the products with the most significant declines were vegetables (-6.8%), ready meals (-1.3%), meats (-0.6%), and dairy products (-0.2%).

The slowdown was so clear that even occasional increases—such as the 5.2% increase in beverages and infusions—failed to alter the monthly average for the sector, which remained flat or declined, depending on the survey.

Econviews , another well-known firm in the sector, reported that food prices in Greater Buenos Aires rose 0.9% in the last week of the month, although the monthly total was only 0.5%. According to the report, the only segment that saw significant increases was fruits and vegetables, with an average variation of 4.8%.

For its part, Equilibra measured a 1.5% increase in "food and non-alcoholic beverages" and only 0.8% in alcoholic beverages and tobacco, which helped contain overall inflation, which stood at 2%.

The C&T Economic Advisors survey for the Greater Buenos Aires (GBA) estimated monthly inflation at 1.8%, with a 0.4% increase in food prices. Its report highlighted that improved weather conditions—with less rain—improved distribution logistics, allowing many prices to remain stable or decline.

The Freedom and Progress Foundation also projected inflation of 1.8% for May, the lowest since 2017 if the months disrupted by the pandemic are excluded. Although they did not break down the figure by category, they did highlight the key role of the food price freeze in this new scenario.

Eco Go estimated inflation in May at around 2%. The consulting firm emphasized that, despite increases such as the 7% rise in transportation prices and the adjustment in fuel prices, the main factor holding back the index was low food inflation.

Analysts agree that this trend could consolidate if exchange rate stability and fiscal order are maintained, and external shocks are avoided. Low food inflation not only improves macroeconomic indicators, but also has a direct impact on people's pockets, social perception, and expectations for the rest of the year.