Poverty in Argentina rises to 32.3%, ending two years of decline

Argentina's poverty rate climbed to 32.3% in the first half of 2026, marking a 4.1 percentage point increase from the previous half of 2025, according to the National Institute of Statistics and Census. The figure reverses the consistent decline observed since mid-2024. Extreme poverty rose by 1.2 percentage points, from 6.3% to 7.5%.

The data covers the 31 urban areas surveyed, with 9.7 million people below the poverty line and 2.2 million in extreme poverty. Projected nationwide, the poverty rate is estimated between 15.4 million and 15.5 million people, and 3.6 million in extreme poverty. The household report shows 24.4% below the poverty line and 5.6% in extreme poverty.

Year-over-year, there is a 0.7 percentage point rise in poverty and 0.6 in extreme poverty, compared to the first half of 2025. Inflation and weak labor market dynamism are cited as factors contributing to the rise. Child poverty is notably high at 44.5% for those under 14. Geographic disparities exist, with Concordia at 56.2%, Gran Resistencia at 48.6%, and Posadas at 42.2%.

The Buenos Aires metro area had a 36.9% rate, while Buenos Aires city itself had 11.1%. Labor expert Leopoldo Tornarolli attributed the rise to inflation's surge and the labor market's sluggishness. Economy Minister Luis Caputo noted a 2.9% economic activity decline in July, attributing it to transitory factors like gas scarcity, weather events, and reduced work hours.

Despite the poverty increase, Caputo claimed 14 million people were lifted out of poverty in the first half of Milei's administration, stating Argentina has done the most for vulnerable sectors.