The Consumer Price Index (CPI) for the first four months of this year reached 65%, while over the past 12 months, it has accumulated to 289.4%, according to Argentina’s National Institute of Statistics and Census (Indec).

President of Argentina, Javier Milei, continues to achieve economic successes. One month after achieving the first financial surplus quarter since 2008, it was announced that inflation for the month of April finally reached single digits, registering a variation of 8.8%. This translates to the fourth consecutive month of decline during the libertarian leader’s administration.

The initial figure reported by Milei’s government in December was 25.5%; since then, inflation has shown a downward trend: it marked 20.6% in January; 13.2% in February, and 11% in March, as reported by the country’s National Institute of Statistics (Indec).

When considering the first four months of the year, the CPI stood at 65%, while over the last 12 months, it has accumulated to 289.4%.

According to the technical report, the main price increases were seen in Housing, water, electricity, gas, and other fuels (35.6%); “due to increases in gas, water, and electricity rates”; followed by Communication (14.2%), “due to increases in telephone and internet services”; and Clothing and footwear (9.6%) “due to seasonal changes”.

Following the publication of the figure, the president celebrated the results on his social media with a goal celebration and the publication of a photo showing Milei embracing his Minister of Economy, Luis Caputto.

Amid this context, the Central Bank of Argentina announced on Tuesday a new reduction in the reference rate to 40% annually from the previous 50%.

The new rate equates to an effective annual rate of 49.15%, as stated by the BCRA in a press release.

The reference rate set by the BCRA is the basis for managing the Argentine financial system and is a mechanism for adjusting liquidity among banks.