Poverty in Argentina fell to lowest since 2018 under Milei

Poverty in Argentina fell to the lowest level since the first half of 2018 in another victory for President Javier Milei, even as the disinflation process stalls.

In the second half of 2025, 28.2 percent of Argentines lived in poverty, down from 31.6 percent in the first half, according to data published Tuesday by Argentina’s statistics agency INDEC.

A combination of Milei’s austerity and a tightly controlled currency thwarted the pace of price increases in the second half of the year, combined with boosts to some social welfare spending, helping to bring more people out of poverty. The rate is defined locally as incomes that can afford the cost of a basic basket of goods and services.

“The sharp drop in poverty and extreme poverty is supported by economic growth, the disinflation process, and the strengthening of social programs without intermediaries since the beginning of the administration,” Economy Minister Luis Caputo wrote on X.

Since Milei took office, inflation has slowed significantly in Argentina, from a monthly rate of 25.5 percent in December 2023 to 2.9 percent this February. Still, the process stalled in recent months. Monthly inflation hasn’t slowed since May 2025, and is expected to jump again this month as the energy shock from the Iran war hits the country’s drivers at the pump, with gas prices up at least 15 percent since the start of the month.

More broadly, Argentina’s recovery has been uneven, with sectors like oil and gas, mining and finance booming while more jobs-heavy sectors like manufacturing and construction contract. Unemployment rose to 7.5 percent at the end of last year, the highest fourth-quarter print since the pandemic.

The president’s approval rating this month hit its lowest since he took office to 36 percent, according to LatAm Pulse, a survey conducted by AtlasIntel for Bloomberg News.

Economists anticipate Argentina’s economy growing 3.4 percent this year, according to the Central Bank’s latest monthly survey.