The Buenos Aires City price index (IPC), compiled by the local Statistics and Census Institute, utilizes an expense basket that has been updated with more current indices, as opposed to the national government’s Indec which discarded it. In this index, housing-related expenses, including water, electricity, gas, and other fuels, constitute 17.43% of the total basket. This is a significant increase from previous measurements, which were based on data from 2004/05 and only accounted for 12.51% of the basket according to the Buenos Aires methodological report from May 2013.

This shift in calculating the index is particularly relevant given that housing costs have experienced some of the highest increases over the past two years, with expectations for further hikes in the near future. The inflation rate in Buenos Aires for 2024 reached 136.7%, with housing expenditures rising even more sharply at 163.8%. In 2025, the IPC recorded an inflation rate of 31.8%, while housing costs followed closely behind at 34.1%. This highlights the growing impact of housing expenses on the overall cost of living in the city, underscoring the financial pressures faced by residents.

The implications of these adjustments to the price index are significant, as they not only reflect the reality of rising living costs for citizens but may also influence policy responses from the government. With housing representing a major component of the expense basket and showing higher inflation rates than general expenses, there may be increased calls for adjustments in social programs or subsidies to help mitigate the effects of these rising costs on the most vulnerable populations.