18 days ago - economy-and-finance

Inflation on the rise and the dollar under pressure: what is happening with the Argentine economy in August 2025?

By Thiago Carrizo

Inflation on the rise and the dollar under pressure: what is happening with the Argentine economy in August 2025?

Date: August 17, 2025

This winter, the Argentine economy is back in the spotlight. After months of relative calm, the latest data shows warning signs: inflation has risen again, the dollar is moving more strongly, and wallets are feeling the pressure.

 Inflation: slight increase in July

According to INDEC, July's inflation was 1.9 %, slightly higher than in June (1.6 %) and May (1.5 %).
So far this year, the accumulated increase has reached 17.3 %.

The categories that increased the most:

  • Recreation and culture: +4.8 %

  • Transportation: +2.8 %

  • Food and beverages: +1.9 %

Core inflation (which measures more stable prices) fell slightly, from 1.7 % to 1.5 %. Nevertheless, the trend is concerning.

 The dollar is back in the spotlight

In parallel, the Argentine peso depreciated by 1.71 %, and the dollar is approaching $1,343.
In the markets, the caution rate skyrocketed to 33 % annually, reflecting financial tension and the search for refuge in dollars.

This leads to the assumption that August could close with inflation above 2 %, especially since food prices have already shown increases of 2.2 % in the first weeks of the month.

 How does it impact daily life?

For Argentine households, these numbers translate to:

  • More expensive bus and transportation fares.

  • Supermarkets with prices that don’t ease up.

  • Vacations, outings, and leisure becoming increasingly difficult to afford.

The effect is clear: money goes less far and forces a readjustment of consumption habits.

 Conclusion

The current picture shows an economy that still fails to achieve full stability. While the months of low inflation provided relief, the trend in July and the exchange rate pressure raise new doubts.

The big challenge will be to see if the Government can contain the dollar and prevent inflation from skyrocketing again in the remaining months of the year. Meanwhile, for Argentine wallets, the key remains to save every peso and seek safe alternatives to preserve savings.

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Thiago Carrizo

Thiago Carrizo

My name is Thiago Carrizo, specializing in the area of sports, sports training, and fitness, being the CEO of gym.infinit, with extensive experience in cryptocurrencies, cryptographic technologies, digital marketing, networking, closing sales, planning, and content development.

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