Beyond the numbers: what high inflation in Argentina means for everyday spending

Cost of living in Argentina: is the era of money-covered walls over?

When Mariana budgets for her household, it's not a carefree task. She recalls a time when French bread was affordable in Buenos Aires. The cost of a kilogramme was 38.64 pesos in 2017, according to INDEC, Argentina's national statistics agency. By 2026, the price has increased to 4,471 pesos. The accumulated figure exceeded 736.1%. Only Venezuela can hold a candle to this, with an inflation rate of 387.4% in April 2026 (IMF data). Among the highest rates, Turkey achieved 28.6%, Iran 68.9%, and Sudan 75.1% in the same month.

Having been born in Buenos Aires and worked as a journalist for 28 years, Mariana has been watching price hikes very closely. Since she joined WageIndicator as a cost of living data collector in 2019, the stark reality has hit home even more dramatically, if that were possible. A few years ago, a photographer captured this perfectly by portraying people sticking peso bills to the wall. It was cheaper than buying wallpaper.

In May of this year, the inflation rate made headlines as it stabilised at 33.2% (year-on-year change), and at 33.5% in June. Some hailed it as a miracle. Since the new Javier Milei government took office in 2023, stabilisation measures such as price liberalisation and fiscal adjustment have been implemented. “This resulted in an annual inflation rate of 117.8% in 2024. The following year, 2025, ended with 12-month annual inflation at 31.5%, the lowest in eight years.” Can Argentinians breathe a sigh of relief, then?

Inflation and cost of living in Argentina: signs of change, but no relief yet

Prices rose by 2.1% in May 2026 alone, down ​from 2.6% registered in April and came slightly ​under analyst expectations of 2.3%. In June, inflation fell to 1.9%. For Mariana, and millions like her, the question isn’t whether the trend is improving. It’s not just abstract statistics. It’s a daily calculation. It's whether their salaries will cover next month’s expenses.

“Inflation is a figure that should be closely monitored, because it’s not only about food prices. Private healthcare, as well as services such as electricity, gas, water, telephone and transportation.” Mariana is a mother, and it doesn’t go unnoticed that “tuition fees at private schools and universities are also increasing.” It’s an issue related to Argentine idiosyncrasies: “We know everything is going to go up, so before the figures are even released, supermarkets, healthcare providers, service companies, and other businesses raise their prices. This lack of predictability in a country where the rules aren't very clear makes speculation a common practice. Caught in the middle are the workers, whose wages never keep pace with the rising cost of living.”

Transport costs in Argentina: a growing (and unavoidable) burden

Mariana conducted her first surveys as a data collector in 2020 during the pandemic. Due to Argentina being in lockdown at the time, she was forced to collect prices online. 'Later, as things gradually reopened, I was able to conduct in-person interviews,' she says. Like the other 400 data collectors around the world who work for WageIndicator, she collects and monitors prices for food, transport, utilities, and other personal and family expenses on a quarterly basis. Thanks to their efforts, WageIndicator can calculate the Living Wage necessary for workers and their families to afford a decent standard of living.

Argentina is a unique case, though, as not only does price collection take place in an environment of high inflation, but it also lies at the heart of high unemployment and poverty rates, and large informal markets. Ensuring that the data reflects reality is quite crucial, then. “Conceptually, survey data is a snapshot; it reflects the moment it was taken. Some numbers will remain almost constant the following month, others won't.”

Another factor to consider is that prices vary from city to city. To ensure greater data accuracy, Mariana selects the cities to survey with great care: “If I'm assigned to Buenos Aires, for example, I'll use the model cities I have, where I have contacts I can consult. This way, I can verify if there have been price changes, and I can count on firsthand data. In addition to this, I choose certain cities or towns over others and prioritise those with online supermarkets, which tend to have more consistent prices within the area.”

Transportation costs appear to affect people the most: “The government has allowed companies to raise fares, and this comes on top of rising fuel prices.” The geography of Argentina and the distribution of work also play a role. For many, this is an expense that they have no choice but to incur: “Families can choose generic brands at the supermarket, but when it comes to commuting to work, they can't do without public transportation, since the City of Buenos Aires accounts for a significant share of the labour market. Every day, thousands upon thousands of people take trains, subways, and buses (most combining several modes of transport) to get to work.”

Price collection: a drop in the ocean?

Using Mariana’s words, “inflation in Argentina is a chronic illness that has changed doctors, but none have found the right cure." Then what she has been doing as a data collector might seem like a drop in the ocean. But even in the most turbulent of landscapes, people can benefit from understanding what they are up against. Argentinians are quite used to turning a simple shopping trip into an endless series of errands in order to find the best deals. In Mariana’s case, collecting prices helped her compare the cost of essentials: “I could see how much someone who lives in my city pays for mobile phone service, and based on that I was able to decide to switch companies.” Making better decisions affects individuals, families and businesses alike. “Information is power, and it's our tool for understanding the job market and comparing salaries to the cost of living.”

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