Argentina continues to grapple with rising prices as the annual inflation rate approaches 300 percent despite indications of a slowdown. The government is set to release new data on Tuesday, reflecting the country’s ongoing economic challenges.

While monthly inflation rates have declined since peaking at over 25 percent in December, this change has yet to be significantly felt by shopkeepers and consumers. The inflation rate is expected to drop below double digits in April for the first time in six months.

The logistical costs have also risen, with higher transportation and diesel prices contributing to the persistence of high prices for basic goods. 

President Javier Milei’s government, which came into power during a significant economic crisis, has been credited with reducing monthly inflation since Milei took office on December 10. The administration implemented a sharp devaluation of the peso, initially spiking inflation. 

However, a stringent austerity program and efforts to reduce market liquidity have improved the government’s fiscal position, garnering positive responses from investors and boosting equities and bonds.

Retirees and public sector workers have been among the hardest hit by the austerity measures.