Argentine President Javier Milei has to deal with rising inflation as many people say they have yet to feel the benefits of the government’s economic reforms. Photo by Matias Martin Campaya/EPA
Public discontent with Argentine President Javier Milei is rising as inflation accelerates again and many people say they have yet to feel the benefits of the government’s economic reforms.
Argentina has posted stronger economic indicators under Milei, with official data showing lower poverty levels, sustained economic activity and balanced public accounts as the government pursues spending cuts and fiscal discipline.
This strategy received praise from the International Monetary Fund, which said Wednesday it had approved the second review of its agreement with Argentina, reached just over a year ago. The decision clears the way for the scheduled disbursement of $1 billion at this stage of the program.
According to the IMF, “the reform momentum has strengthened significantly in recent months,” highlighting that the government achieved key milestones including the 2026 budget and legislation to “improve labor market flexibility and unlock investment in mining.”
Still, that picture contrasts with the daily experience of many Argentines, with broad sectors of society saying their incomes are insufficient and their quality of life has not improved.
Other indicators also paint a less favorable picture. Unemployment has shown signs of rising, while inflation, after a period of moderation, accelerated again.
Consumer prices rose 3.4% in March, bringing annual inflation to 32.6%, driven by transportation and seasonal expenses such as education, according to Argentina’s National Statistics Institute.
March also saw “a significant impact from the war in the Middle East, consistent with effects recorded in other countries,” Economy Minister Luis Caputo wrote on X, citing increases of “9% in fuel, 24% in domestic airfare and 22% in intercity transportation.”
Unemployment has also shown signs of rising, adding to public frustration over stagnant wages and living costs.
Recent polling suggests Milei is facing one of the most difficult moments of his presidency.
A survey by Synopsis Consultores found 56% disapproval and 35% approval for the president, while CB Consultora Opinión Pública reported 54.5% rejection and 43.9% support.
Lucas Romero, director of consulting firm Synopsis Consultores, told UPI the start of 2026 has been negative for the administration in terms of public opinion.
“January, February and March were months of deterioration in all image indicators and especially in expectations,” Romero said.
He said the widespread belief that the future would improve has weakened, undermining support for the government.
“The economy is showing favorable macro signals but negative micro results,” Romero said. “There is no job creation, there is job destruction, especially in formal employment. And wages have lost against inflation, with a decline in purchasing power.”
Romero added that the rising cost of living is fueling public frustration among voters who increasingly say they are worse off than a year ago.
Political controversies have compounded the economic discontent.
Romero cited the so-called Libra case, an alleged fraud that involves a digital asset publicly promoted by Milei, as well as corruption allegations involving Cabinet Chief Manuel Adorni, who faces scrutiny over alleged illicit enrichment.
“There is evidence suggesting his increase in wealth is not explained by his income or that of his partner, which points to likely judicial complications,” Romero said.
Economist Hernán Letcher of the Center for Argentine Political Economy told UPI that the erosion in purchasing power since the election is driving much of the negative sentiment.
“If the economic situation were better, those scandals would have less impact,” Letcher said. “But because people are struggling, any episode worsens anger toward Milei.”
Speaking Tuesday at the AmCham Summit, hosted by the American Chamber of Commerce in Argentina, Milei acknowledged the latest inflation data was disappointing.
He attributed the increase to higher education costs, rising meat and fuel prices and international uncertainty.
“Once these effects pass, inflation will fall,” Milei said.
Economy Minister Luis Caputo said at the same event that the next 18 months could be Argentina’s best in decades, driven by economic stabilization and new investment.
Caputo said inflation should slow significantly beginning in April and defended the government’s investment incentive regime, which he said has already attracted 35 projects totaling $85 billion.
