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Unprecedented Drop in the Basic Food Basket in May 2025 in Argentina
In May 2025, Argentina's Basic Food Basket (CBA) registered a 0.4% decrease, an unprecedented event since INDEC resumed the data series in 2016. This drop is mainly explained by a sharp reduction in the prices of fruits and vegetables, with notable seasonal declines such as lettuce (-25.3%), lemon (-23%), and orange (-10.5%), as well as decreases in other food products like sugar, salt, wine, hake fillet, and water crackers.
This behavior contrasts with the historical trend of monthly increases in the CBA and marks a turning point in Argentina's recent inflationary context.
Updated Poverty and Indigence Thresholds
To avoid falling into indigence: In May, a typical family (two adults and two children) needed at least $500,281 in income.
To avoid being considered poor: The Total Basic Basket (CBT), which includes other essential goods and services besides food, rose just 0.1% in the month. Thus, a typical family needed $1,110,624 not to fall below the poverty line.
Year-on-Year and Accumulated Variations
CBA: Over the past 12 months, the Basic Food Basket increased by 29.3% and has accumulated an 11.3% rise so far in 2025.
CBT: The Total Basic Basket rose 30.5% year-on-year and 8.4% so far this year.
Context and Methodology
The CBA determines the indigence threshold and is calculated based on the minimum caloric and protein requirements of an average adult, according to consumption patterns surveyed by the National Household Expenditure Survey.
The CBT expands this calculation to include non-food expenses (clothing, transportation, health, etc.) using the Engel coefficient.
CBA (indigence threshold): $500,281 for a typical family, with an unprecedented monthly drop of 0.4%.
CBT (poverty threshold): $1,110,624 for a typical family, with a marginal increase of 0.1%.
This behavior shows a significant slowdown in the basic cost of living, especially for food, in a context where general inflation also slowed (1.5% in May)
In May 2025, Argentina's Basic Food Basket (CBA) registered a 0.4% decrease, an unprecedented event since INDEC resumed the data series in 2016. This drop is mainly explained by a sharp reduction in the prices of fruits and vegetables, with notable seasonal declines such as lettuce (-25.3%), lemon (-23%), and orange (-10.5%), as well as decreases in other food products like sugar, salt, wine, hake fillet, and water crackers.
This behavior contrasts with the historical trend of monthly increases in the CBA and marks a turning point in Argentina's recent inflationary context.
Updated Poverty and Indigence Thresholds
To avoid falling into indigence: In May, a typical family (two adults and two children) needed at least $500,281 in income.
To avoid being considered poor: The Total Basic Basket (CBT), which includes other essential goods and services besides food, rose just 0.1% in the month. Thus, a typical family needed $1,110,624 not to fall below the poverty line.
Year-on-Year and Accumulated Variations
CBA: Over the past 12 months, the Basic Food Basket increased by 29.3% and has accumulated an 11.3% rise so far in 2025.
CBT: The Total Basic Basket rose 30.5% year-on-year and 8.4% so far this year.
Context and Methodology
The CBA determines the indigence threshold and is calculated based on the minimum caloric and protein requirements of an average adult, according to consumption patterns surveyed by the National Household Expenditure Survey.
The CBT expands this calculation to include non-food expenses (clothing, transportation, health, etc.) using the Engel coefficient.
CBA (indigence threshold): $500,281 for a typical family, with an unprecedented monthly drop of 0.4%.
CBT (poverty threshold): $1,110,624 for a typical family, with a marginal increase of 0.1%.
This behavior shows a significant slowdown in the basic cost of living, especially for food, in a context where general inflation also slowed (1.5% in May)
