Buenos Aires: Argentina’s poverty rate has climbed to 32.3 percent during the first half of 2026, marking a reversal after a significant decline recorded during the previous year and creating a new economic and political challenge for President Javier Milei’s government.

Official figures released by Argentina’s national statistics agency show that poverty increased by 4.1 percentage points compared with the second half of 2025, when the rate stood at 28.2 percent. Extreme poverty also increased, rising from 6.3 percent to 7.5 percent of the population.

The latest figures indicate that the improvement in living conditions recorded during the earlier part of Milei’s presidency has lost momentum. The government had previously highlighted falling poverty as an important indicator of the effects of its economic programme.

The latest increase has been linked to the difficulty many households are facing in keeping their incomes in line with the rising cost of essential goods and services.

According to the official data, household income per person increased during the first six months of the year, but the cost of the basic basket used to determine the poverty threshold increased at a faster pace. This left many families unable to maintain the same level of purchasing power.

Unemployment also rose during the second quarter, reaching 7.9 percent, according to the latest figures. The increase in joblessness has added another layer of pressure for households already struggling with higher living costs.

The poverty figures also reveal significant differences between age groups. Children and teenagers are among the groups most affected, with the proportion living below the poverty line substantially higher than among older sections of the population.

Argentina had experienced a sharp reduction in poverty after the rate reached more than half of the population during the first half of 2024. The rate subsequently declined as inflation slowed and the government’s economic measures began producing changes in prices and household incomes.

The latest figures, however, show that the downward trend has not continued into 2026.

Economic analysts have pointed to wage growth, employment and the cost of essential goods as important factors that will determine whether poverty begins to decline again.

The Catholic University of Argentina has also warned that poverty could rise further during the year if current economic pressures continue. Its estimates indicate that the rate could approach 35 percent by the end of 2026.

The figures arrive at an important political moment for Milei’s administration. Argentina is moving toward another presidential election cycle, making economic conditions and household purchasing power increasingly significant issues in the country’s political debate.

The government has defended its broader economic programme and has emphasized the progress made in reducing inflation and lowering poverty from the much higher levels recorded in 2024.

However, the latest statistics demonstrate that controlling inflation alone has not prevented renewed pressure on household finances.

The challenge for the government now is to maintain economic stability while improving employment opportunities and ensuring that wages can keep pace with the cost of basic necessities.

Whether the recent increase represents a temporary setback or the beginning of a longer reversal will depend on developments in employment, wages, inflation and household consumption during the remainder of the year.

For millions of Argentines, the latest figures underline the continuing difficulty of translating macroeconomic changes into improved household living standards.