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last mo.

Argentina’s Spending Slump Persists as Households Put Groceries on Credit

A UBA analysis points to weak real incomes and costly financing pushing everyday supermarket spending onto plastic.

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Cada vez más argentinos recurren a la tarjeta de crédito para llenar el changuito: el 45% de las compras en supermercados se financia con deuda, según un estudio de la UBA.
La participación del crédito en las transacciones de supermercado pasó del 39 al 45%.
Crecieron los pagos con tarjetas de crédito, aunque no a más de un mes

Overview

  • The latest UBA/Centro RA report finds credit cards account for about 45% of supermarket transactions from December 2023 to May 2025, with a slight one‑point pullback since the prior reading but a clear upward trend over the period.
  • Consumer credit delinquency jumped 147% to 6.2% by July 2025, and Central Bank data show household loan arrears at 6.6% in August, the highest since the pandemic.
  • Sales remain depressed: in August, wholesale outlets fell 8.4% year over year and supermarkets rose just 0.34% year over year with a 0.23% monthly drop; versus the start of Milei’s term, wholesale sales are roughly 35% lower and supermarket sales about 27% lower.
  • Payment patterns shifted as debit use fell from 34% to 26% and cash from 20% to 16%, while digital wallets grew from 7% to 13% of supermarket operations.
  • Researchers warn the likelihood of a demand recovery is low due to wages trailing prices, high borrowing costs, and political uncertainty, and they note long‑standing card promotions do not explain the turn to credit for basic goods.