In Argentina, rising food prices have been a significant factor affecting household finances, leading to an increase in poverty rates. After experiencing a decline in poverty figures since June 2024, where it peaked at 52.9%, the levels increased again to 31% in January, according to data from the Torcuato Di Tella University (UTDT). This reversal has been fueled by the recorded increase of 4.7% in food prices during January, marking the largest rise since May 2024, when the increase was 4.8%.

Food price inflation, which had previously reached a low of 1% in May of last year, saw a resurgence in the last quarter of the year with increases of 4.1% in September, 2.3% in October, 2.4% in November, and 3.1% in December. These price hikes have significantly impacted the indicators used by INDEC, the national statistics body, to measure poverty and extreme poverty, pushing them well beyond the 2.9% Consumer Price Index (IPC) reported at the beginning of the year. The Basic Total Basket (CBT), which determines the poverty line for a typical family, showed a 3.9% increase in January, exacerbating the financial strain on many households.

The implications of this trend are profound as rising food costs contribute to greater financial instability for families, potentially straining social services and increasing calls for economic reforms. Policymakers are now faced with urgent challenges in addressing these economic pressures, as the fluctuations in food prices directly relate to the cost of living and overall poverty rates, signaling a need for strategic responses to stabilize food access and affordability in the long term.