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Rents: How to calculate inflation increases in July 2025 - La Nación Propiedades
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Alquileres: cuáles son los métodos para calcular los aumentos por inflación en julio 2025
Desde que murió la ley de alquileres, los contratos pueden ajustarse por inflación; lo que hay que saber antes de avanzar
www.lanacion.com.ar
July 10, 2025
Since the rental law died, contracts can be adjusted for inflation; what you need to know before moving forward.
Rents: How to calculate inflation increases in July 2025. Ricardo Pristupluk.
Since the repeal of the rental law through Javier Milei's Decree of Necessity and Urgency (DNU) in December 2023, the game has opened for defining how contracts are updated. One of the most tempting options for landlords when adjusting them is to use inflation figures , which would allow them to avoid losing profitability.
While the rental law passed in 2020 was in effect, contracts had to be adjusted once a year based on the Rental Contract Index , better known as the ICL, prepared by the Central Bank. This index is based equally on inflation and wages, but is calculated with a two-month data lag. This means that those who update their rent in July, for example, do so based on May's inflation and wage figures.
While the rental law passed in 2020 was in force, contracts had to be adjusted once a year based on the Rental Contract Index, prepared by the Central Bank. Mauro Rizzi / Archive - LA NACION.
In this context, and faced with an unregulated market, some landlords and tenants are agreeing to new two-year contracts , in pesos and based on the CPI (Consumer Price Index ), although some agreements are still adjusted by the CPI (Consumer Price Index) or fixed in dollars and do not require adjustments. To adjust the rental price for inflation, the contract can reference the Consumer Price Index (CPI), which is published by INDEC (National Institute of Statistics and Census) every mid-month .
When signing the contract, the parties must also define how often the inflation adjustment will be made, i.e., the frequency of the adjustment. "When there is high inflation, such as that which marked the end of 2023 and beginning of 2024, it is advisable to have the indexation performed quarterly. In normal times, indexation could be performed quarterly or semiannually," advises Dr. Enrique Abatti, president of the Chamber of Property Owners of the Argentine Republic.
How to calculate inflation increases with an automatic calculator
There are multiple automatic cumulative inflation calculators available online that use data published by INDEC as a reference. One of these is Chequeado, which will be used as a reference in the following procedure:1 - Go to https://chequeado.com/inflacionacumulada/
2 - Where it says “To buy something that was coming out” enter the rental amount that needs to be updated.
3 - Where it says "at the beginning of," enter the month in which the period you want to adjust begins. For example, if you wanted to do a quarterly update at the beginning of July, you should consider the period from March to May (actually, the period is from April to June, but the latest published inflation data is from May).
4 - Where it says “at the end of,” enter the month in which the period from which you want to adjust ends.
5- Where it says “you would need the sum of” the new rental value will appear .
For example, if a quarterly adjustment was agreed upon for a $622,309 lease beginning in April 2025 and due to be adjusted in July, the three-month period from March to May would be used. Given that cumulative inflation during that period was 8.21%, the amount payable would increase to $673,427.13 per month.
Rents that are adjusted for inflation will be able to use an automatic cumulative inflation calculator to calculate the updated figure. Checked.
How to calculate inflation increase manually
If you decide to adjust manually, it is important to note that you should not add up the inflation for each month, but rather multiply the inflation variations for each month and multiply them by the rental value , since this is the accumulated inflation for the period.First, you need to know the inflation rate for the period for which you intend to adjust the rent. The steps to follow are as follows:
- Access the INDEC CPI report, which can be found on the INDEC website ( indec.gob.ar ), then go to the "Statistics" tab, click on "Prices" in the Economy section, and then select the "Consumer Prices (CPI)" button. You can also access it directly from this link .
- Click on the “read report” button.
- On the fourth page of the document, see the second graph, "Monthly Changes in the General CPI Level." There you can see the inflation rate for each month, which will be used to calculate the rate of change for the desired period.
The inflation of each month should not be added together, but rather the inflation variations of each month should be multiplied and multiplied by these and the rental value. INDEC.
Once the data is located, the steps to create the account are as follows:
- First, you must separately calculate the inflation rate for each month, divided by 100 and adding 1. For example, inflation in May was 1.5%, and dividing 100 gives 0.015, plus 1 gives 1.015. Continue this process for each month within the update period.
- Then you have to multiply the current rent value by those individual inflation values.
- The result will be the new rent to be paid for the next quarter.
- In other words, the formula would be: the value of the rent x (inflation first month/100 + 1) x (inflation second month/100 + 1) x (inflation third month/100 + 1) = updated value of the rent.
In a specific example , if a rental contract for $622,309 was signed on April 1st, adjusted quarterly for inflation, it would have to be adjusted for the first time in July. Since the INDEC report is released mid-month, data for March, April, and May would be available on July 1st, but not yet for June.
The monthly inflation rate for those months was 3.7% in March, 2.8% in April, and 1.5% in May.
After dividing each by one hundred and adding one, the account would be: 622,309 x 1,037 x 1,028 x 1,015 = $673,355
The formula would be: the value of the rent x (inflation first month/100 + 1) x (inflation second month/100 + 1) x (inflation third month/100 + 1) = updated value of the rent.
The result does not always coincide with the calculation made using the automatic calculator ( chequeado.com ), since the figures published monthly by INDEC are rounded (the number may contain a greater number of decimals which, when considered in the account, may vary between 100 and 300 pesos more than the final result).
In practice, the tenant will be able to know how much their rent will increase half a month before the adjustment. This is because—using this example as a reference—by mid-June they can already know the inflation rate for May and, thus, calculate how much they will have to pay in July. However, the figure could change if the rent is paid at the end of the month, because the inflation rate for the previous month, in this example, June, would already be available.
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