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1. Inflation eases again while wages continue recovering

January inflation continued to show a deceleration of prices in Argentina. The CPI for the first month of the year marked 2.2% and was the lowest in four and a half years, when the country was paralyzed by the pandemic and there were strong controls. The year-on-year price increase was 84.5%, the lowest since 2022. Likewise, in line with the past nine months, salaries won the race against inflation in 2024, although they still need to recover the purchasing power lost in the last few years. The general average increased last year by 145.5%, while the consumer price index (CPI) increased by 117.8% in the same period.

La Nación: Inflación de enero: fue de 2,2% y acumula 84,5% en doce meses
La Nación: Los salarios le ganaron a la inflación en 2024, con un aumento en promedio de 145,5%

2. The government removes Mariano de los Heros and Sonia Cavallo from their positions

The national government made official the departure of two new officials. The departure of Mariano de los Heros from his position as Executive Director of Anses was confirmed, with Fernando Bearzi appointed as his replacement. The official’s resignation had been requested by President Milei, after he raised the possibility that the government would promote a project to modify the retirement age before the end of the year, which the Executive denies. It was also confirmed that Sonia Cavallo, daughter of former Minister of Economy Domingo Cavallo, has been removed from her position as Argentine Ambassador to the Organization of American States (OAS). Although it has not been officially explained, everything indicates that this departure was a consequence of the questions that the former Minister of Economy has been raising about the economic course of the Government.

La Nación: El Gobierno echó al titular de la Anses, Mariano de los Heros, y asumirá el subdirector
Clarín: Javier Milei le pidió la renuncia a la hija de Domingo Cavallo como embajadora en la OEA

3. The Chamber of Deputies gave half sanction to the Ficha Limpia Law

The bill on Ficha Limpia, which prevents persons convicted for the second time of corruption crimes to run for elective office, obtained a half sanction in the Chamber of Deputies although it will face a difficult course in the Senate. Even so, the ruling party and its allies celebrated the victory over Unión por la Patria, which protested in unison that the government intends to ban an eventual candidacy of Cristina Kirchner. On the other hand, the ruling party obtained the signatures to pass the Executive’s bill to suspend the PASO. Thus, the text is ready to reach the Chamber, which is expected to happen next Thursday, February 20. Finally, the Senate Committee of Agreements made official the majority opinion to approve the appointment of Judge Ariel Lijo to the Supreme Court.

La Nación: Ficha Limpia: obtuvo media sanción el proyecto que impediría a Cristina Kirchner ser candidata

4. National Government achieves a fiscal surplus in January 2025

According to data from the National Public Administration (APN) for the first month released by the Integrated Financial Administration System (SIDIF) of the Ministry of Economy, and analyzed by the Argentine Association of Public Budget and Financial Administration (ASAP), in January 2025, the National Government achieved a primary fiscal surplus of $3.68 billion and a financial surplus of $3.57 billion. This result would be attributed to a remarkable tax collection and a significant reduction in debt interest payments, which would have decreased by 95.4% year-on-year due to changes in the payment schedule of government securities and loans. However, excluding these payments, primary spending would have experienced a real increase of 20.8% compared to January 2024.

El Cronista: La motosierra bajó la velocidad en enero, pero hubo superávit: dónde ajustó el Gobierno

5. The Minister of Economy meets with UIA’s businessmen

Minister of Economy Luis Caputo met with the leadership of the Argentine Industrial Union (UIA) to discuss key issues related to national industries. During the meeting, Caputo emphasized the government’s intention to “balance the playing field” for local production that competes with imported products and to reduce the “Argentinean cost.” For their part, the industrialists expressed their support for the policy of not devaluing and rejected criticism about a possible exchange rate delay. The president of the UIA, Daniel Funes de Rioja, described the meeting as “super cordial” and pointed out that issues such as the reduction of national, provincial and municipal taxes were discussed, as well as the possibility of a free trade agreement with the United States and the relationship with Mercosur. Caputo stated that the government is committed to lower taxes and highlighted the need for provinces and municipalities to also contribute to this effort.

La Nación: Caputo en la UIA: prometió equilibrar la cancha y recibió apoyo en su cruzada contra la devaluación