Argentina Poverty Rate Rises to 32.3 Percent

The National Institute of Statistics and Census of Argentina reported that the poverty rate rose to 32.3 percent in the first half of 2026, up from 28.2 percent in the second half of 2025. Extreme poverty also increased from 6.3 percent to 7.5 percent. The rise follows a period of decline under Javier Milei, whose libertarian government implemented aggressive austerity measures and a contractionary monetary policy to stabilize public finances and tame inflation.

Data indicates the increase was driven by the cost of basic goods rising nearly 20 percent, which outpaced an 11.5 percent increase in average per-capita household income. Formal private-sector employment has fallen for 13 consecutive months, and unemployment reached 7.9 percent in the second quarter of 2026. These economic pressures have manifested in a resurgence of cash-free barter clubs and overflowing soup kitchens in Buenos Aires.

Economy Minister Luis Caputo acknowledged the increase but noted that poverty levels remain significantly lower than those recorded during the first half of 2024. Despite a September AtlasIntel survey showing disapproval of the president climbing to nearly 70 percent among lower-income voters, the government maintains it will not increase public spending or deviate from its current monetary policy to influence the 2027 election.