Argentina's Poverty Rate Rises to 32.3 Percent in First Half of 2026, First Increase Since Milei Brought Inflation Under Control, One Year Before Presidential Election

Argentina's poverty rate rose to 32.3 percent of the population in the first half of 2026, up from 28.2 percent in the previous period, according to data released Thursday, September 24, 2026, by the country's statistics agency INDEC. The increase marks the first rise in poverty since President Javier Milei brought inflation under control after implementing his austerity program. The data was released barely a year before Argentina's next presidential election in 2027. Overflowing soup kitchens, a resurgence of cash-free barter clubs, and families taking out short-term loans for groceries are highlighting growing social strains in Argentina, according to Reuters reporting from Buenos Aires. President Milei, speaking at the Economic Club of New York on September 24, downplayed concerns about Argentina's stalling economy, touting consistent annual growth and saying he is very calm about his chances to win another term next year. The poverty data was released the same day Milei addressed the UN General Assembly, where he said the organization has broken the sacred covenant on which it was founded. The poverty increase will test Milei's political durability ahead of the 2027 election. While the president has succeeded in stabilizing inflation, a key campaign promise, the social cost of his austerity measures is now visible in official statistics. The timing of the data release, one year before the election, gives opposition Peronist forces a concrete metric to challenge Milei's economic policies. However, Argentina's opposition remains fragmented and leaderless, struggling to unite against Milei's reelection bid. The test for Milei will be whether voters credit him for taming inflation or punish him for rising poverty, a question that will shape the 2027 campaign.