Argentina sees sharp rise in household debt and utility costs under Milei’s policies

Juan Cuattromo, head of Banco Provincia, warned that delinquency among families and small‑business borrowers in Buenos Aires Province jumped to 12.1% in April, far above the 3.7% level a year earlier. He linked the increase to the macro‑economic stance of President Javier Milei, noting that lower incomes and a weak labour market are driving households to borrow for food and basic services. The bank is extending refinancing programmes with rates up to 39% and terms of up to 72 months to ease the burden on thousands of borrowers.

A separate study by the Universidad de Buenos Aires and CONICET found that the public‑service basket in the Greater Buenos Aires area has surged 919% since December 2023, with a 10.1% month‑on‑month rise in June. Services now account for 15% of the average salary, and transport costs represent the largest share of household expenses. Gas, electricity, water and transport tariffs have all risen sharply, pushing many families to spend a much higher proportion of their income on basic utilities despite the government’s de‑inflation plan and wage‑liquidity measures.

Both analyses underscore the growing pressure on Argentine households and small enterprises as prices outpace wages, highlighting a widening affordability gap under the current economic policy framework.