Overview
- The Cámara Argentina de Comercio y Servicios (CAC) says consumption in August 2026 fell 1.1% year‑on‑year and declined 0.8% from July on a seasonally adjusted basis.
- Monthly inflation slowed to 1.7% in August and the year‑on‑year rate eased to 33.5%, a shift that could restore purchasing power if the trend persists.
- Spending was uneven across sectors: clothing and housing rose about 4.9% and 4.8% respectively, while transport and vehicles dropped 11.4% and recreation fell 8.2%.
- The cooling of consumer credit is weighing on durable-goods demand, with credit card, personal and secured consumer loans slipping in 2026 even as mortgage lending keeps rising more slowly.
- The contraction follows a partial recovery driven by credit in 2025 and leaves consumption still around 2.1% below its peak from early 2025, which keeps household demand weak despite some gains in overall activity.