Argentina’s poverty rate climbed to 32.3% in the first half of 2026, according to data from the national statistics agency INDEC. This marks the first increase in over a year, reversing a trend of declining poverty that had been seen under President Javier Milei. The share of the population living below the poverty line rose by four percentage points from 28.2% in the second half of 2025. Extreme poverty, defined as living on less than the minimum necessary for basic needs, increased from 6.3% to 7.5% during the same period. This rise comes after Milei had previously celebrated falling poverty rates as proof that his free-market reforms were working. However, poverty had previously surged to nearly 53% in the first half of 2024, following a currency devaluation and significant spending cuts. The rate then dropped rapidly as Milei’s austerity policies helped bring inflation down to an eight-year low of 28% in the second half of 2025. Now, the latest data indicates that progress has slowed, with rising unemployment and higher prices reducing people’s purchasing power. Average salaries remain below their real value when Milei took office in December 2023, despite a modest 11.5% increase in average household income compared to the previous six months. Meanwhile, the cost of a basic basket of goods used to calculate the poverty line rose nearly 20%. The INDEC survey found that approximately 9.7 million people in 31 urban areas across Argentina were living below the poverty line, with 2.25 million in extreme poverty. Nearly 45% of children under 15 were also living in poverty. The survey covered around 30.1 million people in major urban areas, though Argentina’s total population is about 46 million. President Milei inherited a struggling economy marked by double-digit inflation and large budget deficits. In response, he implemented one of the most aggressive austerity programs in recent Argentine history, cutting public spending and subsidies while tightening monetary policy. His government argues that achieving fiscal balance is essential for economic stability and future growth. However, the improvements in macroeconomic conditions have not yet translated into more jobs or stronger economic growth. Formal private-sector employment has declined for 13 consecutive months, and economic activity dropped 2.9% in July compared to the previous month, according to INDEC. Political analyst Lucas Romero noted that while Milei has asked citizens to make sacrifices for fiscal stability, without visible improvements in employment, income, or economic activity, it may be challenging to maintain public support for further austerity. Critics argue that the poorest Argentines have borne the brunt of these changes, with cuts to pensions and social programs accounting for nearly a quarter of the government’s spending reductions. Economy Minister Luis Caputo acknowledged the rise in poverty but emphasized that it remains significantly lower than during Milei’s early months in office.