Argentina has seen a sharp increase in the cost of public services and transportation. Between December 2023 and December 2025, the price of a bus ticket in the Buenos Aires Metropolitan Area (AMBA) surged by 937%. Natural gas prices rose by 709%, water by 386%, and electricity by 339%. Overall, the cost of a consumer basket including these services jumped by 561%, far exceeding the general inflation rate of 185% for the same period. The primary driver of this surge was the government's decision to eliminate subsidies for public services, leading to a significant price increase for households. Inflation for 2025 is estimated to have been around 30%. Although the rate of price increases slowed in 2025 and became more moderate, the overall cost of services remains at a historically high level. For instance, in December 2025, an average household in AMBA without subsidies spent 183,410 pesos monthly on transport, electricity, gas, and water. The government plans to continue phasing out subsidies, which could lead to double-digit increases in electricity and gas tariffs in 2026. This is expected to affect households with incomes above a certain threshold and will involve differentiated pricing based on consumption levels.
