An Argentine Institute (IAG) report for the second quarter of 2025 has revealed that middle-income households have faced the greatest difficulties in covering their expenses, surpassing low-income deciles. This occurs against a backdrop where personal loan delinquency reached a record high of 9.1%. According to an analysis of the Permanent Household Survey (EPH - INDEC) microdata, nearly half of all households in the country (48%) had to resort to at least one strategy to make ends meet. This pressure on the middle class is partly attributed to changes in relative prices due to subsidy cuts. For instance, spending on services (water, gas, electricity) rose from 4% to 11% of a median salary between November 2023 and 2025. Middle-income households were more likely to use financial mechanisms than lower-income groups: 40% spent their savings (compared to 35% on average), 18% took on debt with financial institutions (compared to 12% of lower-income groups), and 9% sold belongings. Notably, debt levels were the only variable to exceed the 2024 peak.
