August inflation eases to 1.7%
Consumer prices in Buenos Aires rose 1.7% in August, according to the city's statistics institute. This brings the cumulative increase for the first eight months of 2026 to 21.5%, with an annual rate of 33.3%, slightly above July's figure.[S1][S2]
The monthly figure marks a slowdown from July's 2.9% and is the lowest in the past year, resuming a downward trend that had been interrupted the previous month. The city's report serves as a preview for the national index, which private consultants expect to also come in below 2% when released on Thursday.[S1][S3]
Housing and food lead price increases
The main drivers were housing, water, electricity, gas and other fuels, which rose 2.6% and contributed nearly one percentage point to the overall index, due to increases in common expenses and rents. Food and non-alcoholic beverages increased 1.8%, with fruits jumping 12.5%, bread and cereals up 2.3%, and dairy and eggs rising 1.6%.[S1][S2]
Health costs rose 1.9%, driven by updates to private medicine premiums, while transportation increased 1.2% due to higher bus and subway fares and car prices, partially offset by lower airfares. Clothing and footwear fell 0.7%, and restaurants and hotels dropped 0.1%.[S2]
Wages still under pressure
Despite the slowdown, analysts point out that real disposable income has been falling systematically since the current administration began. According to Paramétricas Consultores, while real wages rose 3.2% since November 2023, the amount left for other consumption after essential expenses dropped 10.8%.[S3]
Essential costs such as housing, utilities, health, and transportation now absorb nearly 56% of income, up from 45% at the start of the administration. This squeeze has contributed to a sharp decline in mass consumption, leading to over 30,000 business closures and the loss of more than 330,000 formal jobs.[S3]
