Argentina’s poverty rate rose to 32.3% in the first half of 2026, up from 28.2%, putting pressure on President Milei ahead of the 2027 election.

The Catholic University of Argentina estimates poverty could rise to 35% by the end of 2026.

While Milei’s austerity policies have sharply reduced inflation and stabilized public finances, cuts to subsidies and weak wage growth are putting pressure on households.

Milei’s government says it will maintain its austerity program, arguing fiscal discipline is needed for long-term growth.

Source: Reuters