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 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%.

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.

Argentina's monthly inflation rate slowed to 2.2% in January, its lowest level since mid-2020, while landing slightly below analyst estimates, data from the INDEC statistics agency showed on Thursday.