July 17th, 2026
1. Inflation in June was 1.9%, the lowest figure in 10 months
After nearly a year, inflation fell below the 2% threshold again, standing at 1.9% in June 2026, according to the National Institute of Statistics and Censuses (INDEC). This is the lowest figure since August 2025, when the Consumer Price Index (CPI) also stood at 1.9%. From then on, inflation began to accelerate, continuing through March, when it reached 3.4%. Since then, the CPI has been falling for three consecutive months. Furthermore, the cumulative change stood at 16.8% in the first six months of the year, and the year-over-year rate reached 33.5%, slightly higher than the 33.2% recorded in May. In addition to inflation, INDEC released data on the Basic Food Basket (CBA) and the Total Basic Basket (CBT) for the sixth month of the year, which indicate the minimum thresholds for extreme poverty and poverty, respectively. According to the agency, a family of four needed $$1,531,473 to avoid poverty in May 2026: 2.2 percent more than the previous month and 35.7 percent more than 12 months ago.
Clarín: La inflación de junio fue de 1,9%, la menor en 10 meses
2. Installed manufacturing capacity fell, and five sectors continue to operate at less than 50%
Installed manufacturing capacity stood at 58.4% in May 2026, down from April’s level of 59.9% and in contrast with the same month last year, when it reached 58.9%, according to the National Institute of Statistics and Censuses (INDEC). Furthermore, the May figure broke the upward trend the series had shown since January of this year: the indicator had stood at 53.6% in January, 54.6% in February, 59.8% in March, 59.9% in April, and 58.4% in May. The sectoral breakdown for May showed five sectors above the overall level: oil refining (88.7%), basic metal industries (75.4%), paper and cardboard (68.1%), chemicals and chemical products (65.6%), and food and beverages (60%). Below the average were nonmetallic mineral products (55.5%), publishing and printing (54.0%), the automotive industry (45.5%), tobacco products (43.2%), textiles (42.2%), rubber and plastic products (39.6%), and metalworking (excluding automotive) (38.7%). This distribution created a wide gap between the sector with the highest capacity usage and the one with the lowest. While oil refining approached 90%, metalworking (excluding automotive) remained below 40%.
3. Despite the deficit in June, the government was able to maintain the fiscal surplus during the first half of the year
In June, the National Public Sector (SPN) recorded a primary deficit of $696,843 million and a fiscal deficit of $1,024,891 million. The June figure marks the first monthly financial deficit since the start of the year, although this result was anticipated by the government’s economic team, as June is typically a month of high seasonal spending due to the payment of the mid-year bonus to public employees. In any case, the first half of the year ended with a fiscal surplus. As Economy Minister Luis Caputo reported via his X social media account, the month’s financial deficit resulted from net interest payments totaling $328,049 million. Additionally, the result was affected by lower tax revenue associated with the postponement of the individual income tax filing deadline. Despite the monthly deficit, Caputo emphasized that public accounts continue to show a positive balance. Between January and June, the SPN recorded a primary surplus equivalent to 0.6% of GDP and a fiscal surplus of 0.1% of GDP. Upon making his statement, Caputo stated that “order in public accounts is a fundamental pillar of the economic program” and affirmed that this objective was achieved “through a significant reduction in public spending.” He also noted that this strategy made it possible to implement a cumulative reduction in national taxes since 2024 equivalent to nearly three percentage points of GDP.
4. The Senate postponed the Private Property Bill once again
The ruling party failed to secure the necessary votes to pass the Private Property Inviolability Bill and was forced to postpone its treatment in the Senate once again, marking the fourth time the bill has been left unaddressed. At the proposal of Patricia Bullrich, chair of the La Libertad Avanza caucus, the Senate agreed to adjourn until August 6, avoiding a defeat and opening up two more weeks of negotiations with allied groups that have reservations about key aspects of the bill. The initiative, one of the government’s main legislative priorities for the second half of the year, modifies the expropriation regime, eliminates restrictions on the purchase of rural land by foreigners, repeals limitations on its sale in areas affected by fires, and incorporates the concept of “administrative silence” to deem state authorizations approved when the administration fails to respond within the prescribed timeframe. It was precisely these last two points that sparked the greatest disagreements: groups open to dialogue objected the scope of “administrative silence,” while the amendment to the Land Law took on unexpected political sensitivity. Allies of the ruling coalition hardened their position, insisting on empowering the provinces to establish their own regulations for authorizing sales to foreigners, an alternative that La Libertad Avanza rejected. The tension also spread to the ruling party itself: according to parliamentary sources, Vice President Villarruel proposed suspending the session and withdrawing the bill, but Bullrich rejected that option. Ultimately, the ruling party managed to open the debate but ended up agreeing to a recess to avoid a defeat in the session.
Infobae: El Senado pospuso la ley de propiedad privada: habrá cuarto intermedio hasta el 6 de agosto
5. The government reformed the postal customs system and eliminated limit values
Through Decree 604/2026, the national government formalized a comprehensive reform of the customs regime for postal shipments, with the aim of facilitating foreign trade for consumers, entrepreneurs, and small and medium-sized enterprises. Regarding to imports, the conditions between Correo Argentino and private courier services has been standardized, eliminating the disparities that previously existed between the two. Non-commercial international purchases of up to US$400 FOB per shipment are exempt from import duties and statistical fees, with a limit of five shipments per person per year. This threshold represents a significant increase from the US$50 limit that previously applied to the national postal service, although it reduces the number of permitted shipments from twelve to five per year. A key change is the repeal of Article 8 of Decree 161/1999, which established a flat rate of 50% on amounts exceeding the duty-free allowance: now, any value exceeding the limits will be taxed under the general import regime, putting an end to tax uncertainty. At the same time, a system for the collection of taxes in advance is being implemented, under which platforms such as Amazon, Shein, and Temu will be required to pay taxes at the time of the customers purchase. Regarding exports, the Decree authorizes commercial shipments by mail without limit values, taking advantage of the simplified procedures of the Universal Postal Union to facilitate the entry of producers and small businesses into international markets. For non-commercial shipments intended as family support or personal gifts, an exemption from export duties is established for up to U$S 5,000 per month per sender. The official postal operator will automatically represent the recipient before customs, unless expressly objected to, and ARCA will issue supplementary regulations.
IProfesional: Se modifica el régimen de courier y cambian pautas para compras en Shein, Temu y Amazon