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Rents: How to calculate inflation increases in October 2025 - La Nacion Propiedades
Source:
October 17, 2025
Since the repeal of the rental law, contracts can be adjusted by the index decided between the parties, but the most commonly used is the CPI.
Depending on when the contract was signed, each tenant faces the increases agreed upon with the owner. Freepik
Following the repeal of the rental law —through Javier Milei's Decree of Necessity and Urgency (DNU) in December 2023—the game was opened to define how contracts are updated . One of the most convenient options for both landlords and tenants when adjusting them is to use inflation data .
While the rental law passed in 2020 was in effect, contracts were 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 August, for example, do so based on June's inflation and wage figures.
In this context, and faced with an unregulated market, some landlords and tenants are agreeing to new two -year contracts , in pesos and adjusted for inflation every three or four months . However, some agreements are still adjusted by the ICL (Income Tax) 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 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.
Most rental contracts are adjusted for inflation.Hernan Zenteno - La Nacion
How to calculate the increase due to inflation
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:- Go to https://chequeado.com/inflacionacumulada/
- Where it says “To buy something that was coming out” enter the rental amount that needs to be updated.
- 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 in mid-October, you should consider the period from July to September (since the latter has already been disclosed).
- Where it says “at the end of,” enter the month in which the period from which you want to adjust ends.
- 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 $650,000 lease agreement beginning July 16, 2025 , that is due to be adjusted in October, the three-month period from June to August will be used. Given that cumulative inflation during that period was 5.97%, the amount payable would increase to $688,821 per month.
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 these 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.
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, September's inflation rate was 2.1%, and dividing 100 gives 0.021, plus 1 equals 1.021. Continue reading the main story 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 concrete example , if a lease for $650,000 was signed on July 16th with a quarterly inflation adjustment, it would have to be adjusted for the first time in October.
The monthly inflation rate for those months was 1.9% in July, 1.9% in August, and 2.1% in September.
After dividing each by one hundred and adding one, the account would be: 650,000 x 1,019 x 1,019 x 1,021 = $689,108
The result does not always match the calculation made using the automatic calculator ( chechado.com ), since the figures published monthly by the 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).
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