Argentina reported monthly inflation of 2.1% in May, down from April’s 2.6% and slightly below expectations. This marked the second straight month that the monthly inflation rate cooled.

Year-on-year inflation increased, with prices rising 33.2% over the 12 months through May, up from 32.4% in the prior month.

INDEC said May’s reading was supported by seasonal price movements, with seasonal items rising 3.5%—led by vegetables. Fuel, electricity, and water costs also increased, by 2.4%. Communications and education prices rose 3.4% and 2.9%, respectively, while the smallest increases were recorded for alcoholic beverages and tobacco (+0.8%) and clothing and footwear (+0.3%).

A Reuters poll had expected inflation to slow for May but noted year-on-year inflation was still likely to rise. The report also said the government expects the annual price path to fall toward around 20% if the economy avoids new disruptions, while uncertainty tied to mid-term elections had weighed on progress previously.