Argentina inflation to soar to 250% this year: OECD

The higher inflation in the two countries stemmed “from loose macroeconomic policy settings in the past”, the report said.

Argentina’s economy is now expected to contract by 2.3 percent this year, compared to 1.3 percent in the OECD’s November forecast.

Milei, a self-styled “anarcho-capitalist”, won a resounding election victory in October, riding a wave of anger over decades of economic crisis in the South American nation.

Milei began his term by devaluing the peso by more than 50 percent, cutting state subsidies for fuel and transport, reducing the number of ministries by half, and scrapping hundreds of rules to deregulate the economy.

His reform package touches on many areas of public and private life, from privatisations to cultural issues, the penal code, divorce and the status of football clubs.

The bill won the “general” approval in principle of the lower house of Congress on Friday.

Last week, IMF chief Kristalina Georgieva praised the Milei government’s “bold actions to restore macroeconomic stability and… address long-standing impediments to growth.”