Buenos Aires shoppers feel cost-of-living squeeze despite forecast inflation slowdown

Shoppers browsed food stalls and checked prices at city markets in Buenos Aires as Argentines continued to feel the strain of rising living costs, even as inflation showed signs of slowing toward the end of 2025.

At a food market near the city center, retirees and younger buyers alike compared prices for eggs, meat and bread. Alberto Battaglia, a 74-year-old retiree, said his pension has failed to keep pace with expenses. Others, like 65-year-old Marcelo Lapena, said they saw steady increases not only in food but also in services and repairs, with some quotes jumping sharply within weeks.

According to a Reuters survey, Argentina’s consumer price index (CPI) is estimated to have risen 2.5% in the final month of 2025, driven by higher prices for goods and services and adjustments to regulated prices. Analysts expect annual inflation for 2025 to be around 31%, down sharply from 117.8% in 2024 and the lowest yearly rate since 2017, based on official INDEC data.

President Javier Milei’s government, which took office in late 2023, has made inflation reduction its top priority and aims to bring price growth close to zero by mid-2026. For many Argentines, however, everyday shopping remains a reminder that prices are still rising, even if at a slower pace.

Production: Horacio Soria, Candelaria Grimberg, Liamar Ramos/Reuters