Argentina’s poverty rate fell last year to its lowest level since 2018, a major victory for President Javier Milei even as progress against inflation stalls.

Since becoming president in 2023, Milei has overseen a remarkable turnaround of South America’s second-biggest economy: His cuts to subsidies and pensions have led to the government’s first budget surplus in 14 years, and have helped tame annual inflation from more than 200% at the start of his term to around 30%.

But progress has slowed: Inflation ticked up in January and February, while economic growth has cooled. Meanwhile, soaring energy prices caused by the Iran war threaten to reverse some gains, with the price of fuel reaching its highest level in years.