Argentine poverty rate climbs, in setback for Milei

Argentina's poverty rate rose to 32.3% in the first half of 2026, according to official statistics, erasing recent gains made under President Javier Milei. The national statistics agency Indec reported that the rate increased by 4.1 points compared to the previous six months. Extreme poverty also climbed from 6.3% to 7.5%. Children aged 14 and younger were the most affected, with 44.5% classified as poor and 10.8% as extremely poor.

Adults unable to afford a basic goods and service basket valued at around US$340 were considered poor, while those who couldn't afford a food-only basket worth around US$150 were deemed extremely poor. Milei's free-market policies, including austerity measures and deregulation, had previously slashed the poverty rate nearly in half during his first two years in office.

However, the recent rise in poverty coincided with a rebound in inflation at the start of the year, which later declined to 1.7%, the lowest level in 14 months. Job insecurity, particularly in the manufacturing and retail sectors, was cited as a major factor behind the high poverty rates, with 30,000 companies closing since Milei took office.

Unemployment reached 7.9% in the second quarter of 2026, the highest level since 2021. Economists attribute the poverty surge more to the prevalence of informal work than unemployment. Milei asserts that he has lifted 14 million people out of poverty, based on the decline from the peak rate following his presidency.