BUENOS AIRES, Jan. 14 (Xinhua) -- Argentina recorded an annual inflation rate of 117.8 percent in 2024, following a monthly price increase of 2.7 percent in December, the National Institute of Statistics and Censuses (INDEC) reported on Tuesday.

After the first year of a stringent fiscal adjustment program implemented by President Javier Milei, inflation decelerated by over 93 percentage points compared to 2023, when it reached 211.4 percent, said the agency.

The price variations last year had the greatest impact on housing and basic services, such as water, electricity, gas and other fuels, which collectively surged by 248.2 percent amid the government's subsidy reduction policy.

Since the beginning of his administration, Milei has prioritized reducing inflation and achieving fiscal balance through measures such as halting monetary issuance and implementing significant public spending cuts. These cuts primarily involved the removal of subsidies for public service tariffs and transportation.

This reduced monetary issuance contributed to inflation deceleration compared to 2023. However, the increased costs of housing services and transportation kept overall price levels high.

Last year, only three sectors reported variations below 100 percent: food and beverages (94.7 percent), household equipment and maintenance (85.7 percent), and clothing and footwear (84.5 percent).

Inflation in 2024 showed a decelerating trend after peaking at 20.6 percent in January, following the sharp devaluation in December.

The data was welcomed by Argentina's Minister of Economy Luis Caputo who stated on X that the announced inflation figure was "the lowest for a December since 2018." ■