Argentina’s inflation rate dropped to 20.6% in January 2025, marking the fourth consecutive month under 3% and the first time in two years that annual inflation fell below 100%, now at 84.5%. This decline follows President Javier Milei’s aggressive austerity policies, including mass public sector layoffs, ministry cuts, and pension vetoes. While Milei’s measures have reduced inflation from a peak of 211.4% in early 2023, they have also pushed millions into poverty and sparked widespread protests. Despite economic recession and declining purchasing power, the government remains optimistic, projecting 5% GDP growth in 2025.