Milei blames opposition and Iran war for 3.4% inflation and calls for patience
Milei called on citizens to be patient and rejected proposals to ease monetary policy
Argentine President Javier Milei devoted his speech on Tuesday at the American Chamber of Commerce (AmCham) summit to addressing the March inflation figure released hours earlier by statistics agency INDEC: a monthly 3.4%, the highest reading in a year and the tenth consecutive month of acceleration since the 1.5% recorded in May 2025.
I didn’t like the figure and it disgusts me, Milei told business leaders at the Buenos Aires Convention Center. When politicians get bad data they usually play dumb or talk about something else. Since I’m Milei and I detest the way traditional politics works, I’m going to talk about inflation.
The president attributed the increase to two main factors. On one hand, he blamed the legislative opposition, accusing it of triggering a massive collapse in money demand equivalent to $41 billion during the second half of 2025. The speculative attack and the attempt by politicians to stage a coup was not free of consequences, he said. Congress passed more than 40 laws trying to break the fiscal balance. They didn’t succeed. On the other hand, he pointed to the impact of the Middle East war on fuel and transportation costs, along with seasonal education price increases in March and rising meat prices.
According to INDEC, regulated prices were the main driver, rising 5.1% due to adjustments in public services, transportation and education. Education jumped 12.1% at the start of the school year; transportation rose 4.1%, including a 9% increase in fuel, 24% in domestic airfares and 22% in intercity transport. Core inflation — excluding regulated and seasonal items — came in at 3.2%.
The figure exceeded market expectations. The Central Bank’s Market Expectations Survey (REM) had estimated 3.0%, and the top ten ranked analysts 3.1%. With the March reading, first-quarter cumulative inflation reached 9.4%, a figure close to what Economy Minister Luis Caputo had projected for the entire year in his budget proposal. Year-on-year inflation stood at 32.6%.
Caputo, who also spoke at the AmCham event, wrote on X that a significant impact from the Middle East war was recorded during the month, in line with effects seen in other countries, and argued that inflation would resume a downward path as the lagged impact of the collapse in money demand loses force.
Milei called on citizens to be patient and rejected proposals to ease monetary policy. When you get desperate, you make bad decisions. We will not go against economic theory or violate our values, he said. Once these effects are overcome, the inflation rate will fall.
Argentina remains the second-highest inflation economy in the region, behind only Venezuela, according to La Nación.
