The continuity of increases in services is generating pressure on the purchasing power of Argentinians, increasing the proportion of income dedicated to housing, education, health, electricity, gas, water, communication, and transportation. According to a report by the consulting firm Focus Market, in March, the service basket will absorb 68% of the total income of a household with two salaries, where the total amounts to $3,123,552 and spending on services rises to $2,124,135.
The analysis is based on two registered salaries in a typical family, compared to the service basket that includes rent, education, health, electricity, gas, water, internet, telephone, and transportation. The evolution of the burden of services on income has varied: in November 2023, it represented 84%, in November 2024 it dropped to 65%, and it is projected that in March 2025 it will reach 68%.
During the previous government, the sum of two average salaries amounted to $1,043,478 and the service basket cost $880,275. Despite the reduction in proportion, currently a household still cannot cover the service basket with a single salary in the current government's management.
The report also analyzed how the salaries of commercial employees impact the coverage of services. In November 2023, an additional 30% was needed on top of the two salaries to cover the entire basket, in November 2024 the surplus required dropped to 2%, and by March 2025 it rose to 6%, reflecting a new loss of purchasing power.
Regarding the food basket, the study showed a more favorable evolution. In November 2023, it represented 18% of the income of a household with two salaries, in November 2024 it dropped to 15.4%, and it is projected that in March 2025 it will reach 15.1%. Despite this improvement, Focus Market warns that there is still the challenge that households cannot access both baskets without dedicating most of their salaries to cover basic needs.
