One of the pillars of Argentina’s economy, consumer spending, has continued to stagnate, which can be explained by the fact that the majority of incomes in the country’s formal economy have not yet returned to their pre-President Javier Milei levels. In its most recent report, Nadín Argañaraz examined the six primary sources of income within the formal economy. These include workers in the private sector, national and provincial public sectors, recipients of the AUH social welfare program (universal child allowance), minimum pensions (which come with an additional bonus), and pensions that are higher than the minimum. “It is interesting to compare current figures with November 2023, the month before the new national government took office, given the economic changes that began [the following month],” Argañaraz wrote in his report.
The most significant decrease was observed among national public-sector workers, with a reduction in purchasing power of 36.5%. This was followed by provincial government employees, who experienced a decline in incomes of 9.8%. Trailing closely were minimum pensions, which experienced a decline of 9.7%. Private-sector wages experienced a modest decrease, falling to 3.6%. Meanwhile, pensions exceeding the minimum rose by 9.1%, while AUH beneficiaries experienced a remarkable increase of 100.5% since the change in government. AUH benefits, however, remain significantly below the minimum wage — even after the minimum wage itself has diminished by approximately 40% of its purchasing power since Milei assumed office. Currently, Argentina’s monthly minimum wage is set at 372,400 pesos, equivalent to US$246.60 based on the official exchange rate. In contrast, the AUH benefit is limited to a mere 150,861 pesos per child. This has been exacerbated by significant rises in utility expenses, with tariff increases significantly outstripping inflation and diminishing the disposable income of lower-income households.
In the Buenos Aires Metropolitan Area, water rates increased by 525%, electricity by 568%, public transportation by 1,408%, and natural gas by 2,185% between December 2023, the month Milei assumed office, and July 2026, according to estimates. In contrast, the Consumer Price Index experienced an increase of 241% during the same timeframe. This has had a direct impact on consumer spending, which continues to exhibit minimal signs of recovery. For instance, market research firm Scentia reported in its most recent findings that mass-market consumption in June experienced a decline of 2.7% compared to the previous year. In comparison to May, the decline registered was 0.9%, whereas the cumulative total for 2026 stood at 2.9%.