Milei’s Veto on Pension Hike Prevails Amid 4.2% Monthly, 236.7% Y-o-Y Inflation in Argentina

Sep 11, 2024, 07:32 PM

Argentine President Javier Milei’s veto of legislation that would have increased social security spending prevailed on Wednesday after the government’s lobbying efforts chipped away at the measure’s support. The lower house of Congress fell short of the two-thirds majority needed to overturn Milei's veto on the pension hike. This legislative victory comes amid an economic backdrop where Argentina's inflation rate remains stubbornly high. Official data showed that the monthly inflation rate stood at 4.2% in August, slightly up from 4.0% in July and above a Reuters forecast of 3.9%. The year-on-year inflation rate was 236.7%. Despite these challenges, the government is projecting a decrease in consumer prices for September.