Nearly Every Other Argentinian Lives in Poverty

Inflation continues to erode purchasing power, and according to a study by the University of Buenos Aires, there will be more than 3 million new poor people in the first three months of 2024

Alarming data on poverty in Argentina comes from a study “Nowcast de pobreza” conducted by Martín González-Rozada of the University of Torcuato di Tella in Buenos Aires.

According to the study, Argentina’s poverty rate is 51.8%, bringing it to 48.3% in the last six months, which is the average between the 44.9% projected for the last quarter of 2023 and the current 51.8% in the first three months of 2024. Argentina registered 3.2 million new poor people in the first half of the year due to the impact of inflation on purchasing power. According to estimates, which also include suburban areas, approximately 22.6 million people will live in poverty out of Argentina’s total population of 46.8 million. However, 2023 ended with 19.4 million people living in poverty, as estimated by the Institute of Official Statistics.

According to the study, the basic basket for a six-month period is 177,598 pesos (approximately US$195) per adult, an increase of 239% over the previous year.

Argentina’s annual inflation rate rose to 287.9%, up 9.7 points from February’s reading, with the country’s inflationary spiral remaining the worst in the world. Monthly inflation fell to 11% in March, down two points from February, the report said, marking the third consecutive monthly drop after reaching 25.5% in December, the highest level since February 1991.