Argentina’s Urban Poverty Rate Falls to 31.6% as Methods Face Scrutiny

Overview

• INDEC reported that urban poverty dropped to 31.6% in the first half of 2025, with indigence at 6.9%, a decline of 6.5 points from the second half of 2024.
• The survey covers 31 metropolitan regions and classifies poverty using a basic consumption basket worth about US$850 per month for a family of four.
• Researchers from Fundar and the Catholic University argued the drop is likely overstated due to outdated consumption baskets, a one‑month income–basket mismatch, self‑reported earnings, and the exclusion of rural populations.
• President Javier Milei and Cabinet Chief Guillermo Francos hailed the results as proof that fiscal discipline curbed prices, with annual inflation easing to 33.6% in August from about 211% at the end of 2023.
• Market strain has continued despite brief relief after U.S. support and central bank dollar auctions totaling US$1.11 billion, with the peso down about 10% in September, the S&P Merval off 15%, and dollar bonds down between 21.5% and 30.7%.