May 15th, 2026
1. INDEC: The government breathes a sigh of relief as inflation and industrial data improve
The national government has reason to breathe a sigh of relief this week thanks to the favorable official data released by the National Institute of Statistics and Censuses (INDEC) regarding inflation and industry. On the one hand, April’s inflation rate marked the first month of disinflation in nearly a year: 2.6%, a slowdown of 0.8 percentage points compared to the previous month. In addition, the Consumer Price Index (CPI) registered a year-over-year change of 32.4%, while year-to-date it stands at 12.3%. According to the agency, the category with the largest increase for the month was Transportation (4.4%), followed by Education (4.2%). Regarding industrial capacity utilization, the March figure was 59.8%, an improvement over the 54.4% recorded in the same month last year, and a recovery from February of this year, when the indicator stood at 54.6%. Thus, the manufacturing sector is showing signs of recovery after a slow start to the year and following February’s reading, which had been the lowest for that month in 14 years. This improvement broke a trend of weakness that the industry had been experiencing, although levels of idle capacity remain high in several sectors.
El Cronista: EL INDEC dio a conocer la INFLACIÓN de ABRIL 2026: de cuánto fue el IPC del mes pasado
2. No agreement with holdouts: The Senate sent the agreement back to committee and moved forward on other issues
The Senate held its second session of the year on Thursday. The main items on the agenda were the referral back to committee of the agreement with two vulture funds, the enactment of the extension of the voluntary weapons surrender program, the submission of 60 judicial briefs, and the approval of international treaties. The agreement with the holdouts—two vulture funds linked to the 2001 default—provided for a debt reduction of nearly 30%. However, at the proposal of ruling party member Agustín Monteverde (LLA), the bill was sent back to committee after amendments to the original agreement were revealed, raising doubts among various blocs. The gun regulation law was passed with 40 votes in favor and 26 against. It extends the Voluntary Surrender Program until December 31, 2027, and establishes a 360-day deadline to regularize unregistered firearms. The five-year extension for Judge Carlos Mahiques (father of the Minister of Justice) was also approved, with 58 votes in favor and 11 against, amid disagreements within the Kirchnerist bloc. Sixty judicial nominations to fill federal vacancies in various provinces were taken up for parliamentary consideration. The Free Trade Agreement between MERCOSUR and Singapore, as well as social security agreements with Switzerland and San Marino, were unanimously approved. Three motions of preference regarding the emergency situation of small and medium-sized enterprises, household over-indebtedness, and the health crisis were also approved by a show of hands.
3. The government is trying to regain control of the agenda, although internal divisions and the opposition are preventing it from doing so
The government’s political leadership met again after a week marked by rumors and internal tensions. The meeting lasted nearly two hours, and very few conclusions were reached, suggesting that the government’s inner circle has yet to establish a clear roadmap for advancing its legislative agenda. The internal unease regarding Patricia Bullrich, leader of the libertarian bloc in the Senate, has not subsided after she sparked a conflict by publicly demanding that Manuel Adorni, the chief of Cabinet, submit his sworn statement as soon as possible. Moreover, the former minister seems only to be deepening this line of action: in addition to her statement that “the president has significant emotionality” in response to questions about her alleged argument with Milei at a meeting last week, she is active on social media criticizing the Buenos Aires City government, in what appears to be an uncoordinated strategy to position herself as a candidate for the city’s mayoral office next year. For its part, the opposition is trying to keep the Adorni case in the spotlight: this week it called a session in the Chamber of Deputies to debate various requests for reports and interpellations of the Chief of Cabinet, though they ultimately decided to postpone it until next Wednesday, the 20th, upon realizing they were far from reaching the quorum needed to convene the session and thus avoid a political defeat.
Perfil: Reunión de mesa política: Adorni condujo, Santiago Caputo no participó y Bullrich se fue antes
4. Foreign Minister Quirno addressed the “red circle” at CICYP
Foreign Minister Pablo Quirno addressed the Inter-American Council for Trade and Production (CICYP) on May 13 and stated that Argentina has moved beyond the stage of “discussing how to survive” to focus on “thinking about how to grow.” The meeting brought together representatives from the main business chambers, 24 ambassadors accredited to the country, national legislators, and the governor of Catamarca, Raúl Jalil. Quirno attributed the shift in the economic cycle to President Javier Milei’s economic program, which, according to the official, curbed hyperinflation, maintained a fiscal surplus, and led to the elimination or modification of more than 14,500 regulations. In this context, he highlighted that the Monthly Economic Activity Estimator (EMAE) recorded cumulative growth of 10.3% between December 2023 and December 2025. Regarding foreign trade, he noted that exports to the United States grew by 80% and that beef sales rose by 54% in the first quarter of 2026 compared to the same period in 2025. He also emphasized that the Mercosur-European Union agreement entered into provisional force on May 1, with the first honey exports already completed. The foreign minister also highlighted the Incentive Regime for Large Investments (RIGI) and announced energy agreements with Germany, Italy, and the United Arab Emirates. CICYP President Bettina Bulgheroni endorsed the government’s measures and emphasized that the current model provides certainty for the private sector.
5. The government cut nearly $2.5 trillion from budget items
The government amended the 2026 budget through a measure signed by Chief of Staff Manuel Adorni and Minister Luis Caputo, with cuts totaling nearly 2.5 trillion pesos. In health, the reductions exceeded 63 billion pesos: the programs most affected were Access to Medicines (−$20 billion), Strengthening of Provincial Health Systems (−$25 billion), and Cancer Detection and Treatment (−$5 billion). Programs for HIV, tuberculosis, and leprosy, as well as the Sexual Health and Responsible Parenthood program, were also cut. In education, cuts totaled $78.768 billion. The National Literacy Plan lost more than $35 billion, the Teacher Salary Compensation Fund was eliminated, and transfers for construction projects at thirteen national universities were suspended. In contrast, $162 billion was allocated to fund the ANSES voluntary retirement plan, and funds for the settlement of social security judgments were increased by $500 billion. The Ministry of Economy indicated that the changes aim to ensure the efficiency of the State.
La Nación: El Gobierno recortó casi $2,5 billones, con un fuerte ajuste en educación y universidades