Core Viewpoint - Argentina's inflation rate has dramatically decreased from 25.5% at the end of 2023 to 1.5% in May 2025, marking a significant achievement for President Milei's radical economic policies, despite rising poverty and social unrest [1][2]. Economic Performance - The inflation rate drop is seen as a major victory for Milei's government, which has implemented aggressive economic reforms over the past 20 months [1]. - By the end of 2024, Argentina achieved a fiscal surplus for the first time in 14 years, with a surplus of 0.1% of GDP [6]. - The government has cut federal departments from 26 to 9 and reduced the number of public servants by approximately 35,000, representing a 7% cut [6]. Social Impact - Despite the positive economic indicators, the poverty rate surged to 53% by the end of 2024, and the real purchasing power of the minimum wage decreased by 28%, the largest drop since the 2001 financial crisis [1]. - Public spending cuts have led to significant hardships for citizens, with many struggling to afford basic necessities as costs for utilities and food have skyrocketed [8][9]. - A report indicated that over half of surveyed families could not afford basic food expenses, and nearly 90% relied on credit or state assistance to survive [9][10]. Political Landscape - A political crisis is looming as Milei publicly criticized Vice President Victoria Villarruel for supporting a pension increase bill, which passed with overwhelming support in the Senate [2][12]. - The relationship between Milei and Villarruel has deteriorated, with Villarruel seen as positioning herself for a potential presidential run in 2027 [12][13]. - Local governors have begun to oppose Milei's austerity measures, threatening the fiscal surplus and challenging his authority [13][14]. Future Challenges - The upcoming midterm elections in October 2025 will be crucial for Milei's reform agenda, as losing legislative support could hinder further implementation of his policies [15][16]. - Analysts suggest that the political struggle is fundamentally about governance rather than economics, indicating that Milei must learn to negotiate and compromise to ensure sustainable progress [15][16].