Argentina poverty rises to 32.3% in first half of 2026

Argentina's poverty rate climbed to 32.3% in the first half of 2026, up from 28.2% in the second half of 2025, according to official statistics agency Indec released Thursday. Indigence, measuring inability to afford a basic food basket, reached 7.5%. The increase erases improvements recorded during 2025 and adds roughly two million people to poverty rolls over the past year, according to iProfesional.

Economy Minister Luis Caputo responded by comparing current figures to the first half of 2024, when poverty stood at 52.9% and indigence at 18.1% following a sharp devaluation. Analysts noted this comparison lacks merit given the exceptional crisis conditions at that time. The poverty data coincided with a 1.4% year-on-year decline in the monthly economic activity estimator (EMAE) for July.

“A modest increase in poverty would not undo the large reduction seen under the Milei government.”

Catholic University of Argentina (UCA) estimates suggest poverty could reach 35% by year-end, with director Agustín Salvia stating 400,000 to 450,000 people fell into poverty each quarter over the past year. UCA's current estimate places the rate between 31% and 32%. Analysts say social gains from disinflation are fading, making further progress dependent on job creation and real wage growth.

Reuters reported visible social strain including crowded community kitchens, the resurgence of barter clubs, and families taking short-term loans to buy groceries. The data arrives just over a year before the next presidential election, posing a political test for President Javier Milei.