By Horacio Fernando Soria and Miguel Lo Bianco

BUENOS AIRES (Reuters) -Argentina's monthly inflation rate slowed to 2.4% in November, the lowest in over four years, the official INDEC statistics agency said on Wednesday, as locals began to warily hope the worst of a biting economic crisis might be over.

The South American nation, facing a tough austerity drive by libertarian President Javier Milei, saw the monthly figure come in well below forecasts of 2.8% and lower than 2.7% a month earlier. Annualized 12-month inflation slowed to 166% from 193%.

"My sense is that we've already passed the worst. It seems to me the economy hit bottom two months ago," said textile merchant Aram Boyaciyan, adding middle and working-class clients with steady jobs appeared to be "recovering purchasing power".

"Six months ago, we didn't know where we were heading, but now we do, and everyone has to adapt to these rules," he said.

Education led the monthly price increases, alongside rent and utilities, tobacco and alcohol. Food and non-alcoholic drinks, however, saw the slowest price rises, INDEC said.

Economy Minister Luis Caputo heralded the monthly inflation print, the lowest since July 2020, adding it put Argentina closer to being able to slow its 'crawling peg' monthly controlled devaluation of the peso to 1% from the current 2%.

Argentina, emerging from a period of major economic crisis and still grappling with rock-bottom foreign currency reserves, capital controls, and 50% poverty, has seen inflation come down as Milei has squeezed state spending to overturn a deep deficit.

Annual inflation, while still sky-high, is down from a peak near 300% in April and is expected to end 2024 closer to 100%.

INFLATION VS SALARIES

The economy, mired in recession, has taken longer to reactivate, squeezing many consumers, especially in the public sector where Milei's spending cuts have been the hardest.

"I don't know much about inflation, but I know that when I get my salary, it's gone in a couple of days," teacher Aida Segot told Reuters. "Each month it used to run out on the 20th; now it runs out on the 12th."

However, after a year in office, political outsider Milei's support remains robust, with many Argentines even angrier at the mainstream politicians he replaced after years of rising prices and economic distortions in the farm-driven economy.

Many are willing to give Milei time, especially given his relative success on inflation.

"I think it's important to understand that this is the path. And while some are struggling, as long as we stay on this path it will be okay," said Buenos Aires merchant Dolores Sagasta.