Argentina's monthly inflation rate dropped to 2.2% in January, its lowest since mid-2020 after libertarian President Javier Milei took office just over a year ago ushering in austerity measures that have helped stabilize the embattled economy.

Inflation, the perennial bugbear of South America's second-biggest economy, was down from 2.7% in December, it said, and January was the fourth straight month in which prices rose by less than 3%.

President Javier Milei has overseen a major crackdown on government spending, leading to a remarkable fall in inflation after years of economic instability.

Argentina's monthly inflation rate likely hit its lowest level since libertarian President Javier Milei came to power in late 2023, ushering in painful austerity measures, a Reuters poll of analysts showed ahead of data due on Thursday.

Inflation in Argentina reached its lowest level since President Javier Milei took office and annual consumer prices dipped below 100% for the first time in two years as he continues to tame expectations in the crisis-prone economy.

Boost for President Javier Milei and Economy Minister Luis Caputo as inflation slows to 2.2%; Consumer prices have risen 84.5% over the past 12 months, according to government data.