Argentina's poverty rate has increased to 32.3 percent in the first half of 2026 under President Javier Milei, according to figures released by the national statistics agency INDEC on September 25, 2026. This marks a rise of 4.1 percentage points from 28.2 percent in the last half of 2025. Extreme poverty, defined as households unable to afford basic food needs, also increased from 6.3 to 7.5 percent during the same period.
Unemployment rose to 7.9 percent in the second quarter of 2026, the highest level since 2021, indicating that more Argentinians are finding themselves out of work. While household income per person rose by 11.5 percent in the first six months of the year, the cost of necessities used to calculate the poverty line increased by nearly 20 percent, according to INDEC.
Estimates from the Catholic University of Argentina (UCA) suggest that the poverty rate could reach 35 percent by the end of the year, reversing the decline seen in 2025.
Milei, who was elected in 2023, previously highlighted declining poverty rates as evidence of the success of his free-market economic policies. However, poverty surged to nearly 53 percent in the first half of 2024 following his government's devaluation of the peso and significant spending cuts, which sharply reduced purchasing power. The rate then fell to 28.2 percent in the second half of 2025, the lowest since early 2018.
Despite the recent increase, the current poverty rate remains below the levels seen in early 2024. Analysts suggest that the recent rise in poverty could indicate that social gains driven by decreasing inflation are losing momentum, with future improvements relying on stronger job creation and real wage growth.
Average salaries are still lower in real terms compared to when Milei took office in December 2023. Nicholas Watson, managing director for Latin America at consultancy Teneo, commented that while a modest increase in poverty would not negate the significant decline seen under Milei, it suggests that the easier improvements may have been exhausted.
The rising hardship appears to be affecting Milei's support among lower-income voters as he prepares for re-election in 2027. Recent opinion polls indicate a sharp decline in his approval rating among poorer respondents, with a September AtlasIntel survey showing disapproval among those earning up to about $650 a month climbing to nearly 70 percent, while approval fell below 30 percent. A year earlier, these figures were 57 percent disapproval and 37 percent approval.