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Buenos Aires Households’ Service Bills Hit $170,000 in October as Subsidy Transfers Rose Before Vote

Officials target lower subsidies next year despite a temporary September bump.

Overview

  • An average AMBA household without subsidies spent $170,412 on public services in October, down 1.9% from September but up 26% year over year, according to IIEP.
  • Public transport remained the cost driver at $76,418, rising 36% annually and accounting for 15 of the 26 percentage points in the basket’s year‑on‑year increase, with an estimated 45% weight.
  • Since December 2023 the services basket has climbed 514% versus 171% inflation, and October’s outlay equaled 10.7% of the average registered wage.
  • ASAP reported September transfers labeled as subsidies at $846.6 billion, up 44.7% nominal and 9.8% real, including $565.1 billion to energy (+20.7% real, with Cammesa +59.1% real) and $255.5 billion to transport (+7.7% real) led by rail.
  • Tariffs cover roughly half of real service costs, and after a 54% year‑on‑year subsidy cut in January–September that explained 42% of the primary‑surplus gain, officials aim to reduce subsidies to 0.50% of GDP next year.