💰 Argentina's urban poverty drops to lowest level since 2018

• Poverty in Argentina's cities fell to 31.6 percent in the first half of 2025, the lowest level since 2018.
• Extreme poverty decreased from 18.2 percent to 7.4 percent in one year.
• Real wages in the private sector increased by 10.4 percent between December 2023 and May 2025.

Poverty decreases by over 20 percentage points

Poverty in Argentina's cities fell to 31.6 percent in the first half of 2025. This shows estimates from Universidad Torcuato Di Tella based on official data from INDEC. The level is the lowest since 2018.

Extreme poverty fell to 7.4 percent, compared to 18.2 percent a year earlier. The decrease comes after poverty rose to 52.9 percent in early 2024. That level was one of the highest in decades following a major currency devaluation and inflation spike.

The change reflects a period of income improvement and price stability. Monthly inflation fell below 2 percent for two consecutive months and reached 1.6 percent in June 2025. Inflation had peaked at over 200 percent annually at the end of 2023.

Wages grow faster than cost of living

Real wages in the private sector grew by 10.4 percent between December 2023 and May 2025. This allowed incomes to finally outpace the rising cost of living.

For lower-income groups, the change was even more pronounced. Their incomes rose by 8.5 percent in early 2025. Meanwhile, the cost of the basic food basket increased by only 2 percent over six months.

This made basic goods more affordable for millions who had fallen below the poverty line during the 2023 crisis. Despite the improvements, around 9.4 million people still live in poverty in Argentina's cities.

Labor market shows mixed signals

Monetary policy helped break the inflation spiral that had accelerated during 2023. The peso's stabilization against the dollar made imported goods more predictable in price. This particularly affected food and energy costs that make up large portions of household budgets for low-income families.

Universidad Torcuato Di Tella's analysis is based on INDEC's official household surveys that measure income and expenditure in urban areas. The measurements cover major cities where the majority of Argentina's population lives.

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