Consumption in Argentina exhibited improvement last year, although it experienced a deceleration in November and December, according to a recent report. Data indicates that consumption increased by 2.5 percent in 2025 relative to the prior year, even as it experienced a decline in December for the second consecutive month. The Consumption Indicator compiled by CAC experts reveals a decline in household spending on goods and services, with a year-on-year decrease of 2.8 percent in November and a 1.4 percent drop in December. In the final month of the year, spending exhibited a month-on-month increase, rising by 1.2 percent compared to the previous period. Household expenditure on goods and services has exhibited a modest rebound since President Javier Milei assumed office in December 2023, subsequent to a significant contraction in 2024. “This evolution in consumption must be viewed in the context of price developments, given that a slight acceleration in inflation was recorded during the second half of 2025,” sources informed.
Sectoral performance exhibited varied trajectories. The “clothing and footwear” category experienced a year-on-year growth of 4.9 percent, which helped mitigate the decline in the IC by contributing 0.4 percentage points. In the interim, the transport and vehicles sector experienced a year-on-year contraction of 2.8 percent. The CAC report indicates that after a 2025 characterized by sustained increases in vehicle registrations, encompassing both cars and motorcycles, consumption within this segment now seems to be stagnating, exacerbating the sector’s downturn. The sector encompassing recreation and culture experienced a decline of 4.3 percent relative to the corresponding month in 2024. This concluded a period of recovery relative to 2024 that had persisted throughout nearly the entire latter half of 2025. Since Milei assumed office and eliminated various subsidies, housing, rent, and public utilities have increased by 6.8 percent year on year, adding one percentage point to the overall index. The remaining categories in the CAC report recorded a year-on-year decline of 3.8 percent in December.
Credit exhibited indications of consolidation following a decline at the onset of 2024. Credit to households and families has demonstrated consistent growth; however, after nearly two years of expansion, it has only recently started to exhibit signs of fatigue. Vehicle registrations exhibit a comparable trajectory, whereas property transactions persist in bolstering overall credit expansion, reflecting positive year-on-year changes, though at a more gradual rate than observed earlier in the year. “Mass consumption exhibited a modest recovery following a significant downturn in 2024, whereas the consumption of durable goods is experiencing a deceleration in its robust advancement. Consequently, durable goods persist in their ascent within household consumption, gradually supplanting mass consumer goods, though the shift is less pronounced,” CAC concluded.
Anticipating the year 2026, the organisation indicated that it commences with “prospects of greater relative stability in this area, with the composition of household consumption tending to stop changing.” A recent report from the Torcuato Di Tella University suggests that inflation in Argentina is expected to remain above 30 percent in 2026. In a recent survey, average inflation expectations for the next 12 months in Argentina were reported at 31.5 percent, reflecting insights from economists, experts, and a multitude of other sources. This indicates a decline of 2.5 percentage points from the 34 percent noted in December 2025.