Argentina inflation falls to 33.5%, Milei faces psychological hurdle to 3%

Argentina's annual inflation has dropped to 33.5% from over 300%, but further disinflation to 3% requires tackling entrenched inflation expectations. Economists note the remaining challenge is psychological, as wage and price-setting behavior may resist further adjustment. This matters because sustained disinflation is critical for Milei's economic reform credibility and market confidence.