A average household in the Buenos Aires Metropolitan Area (AMBA) Without subsidies, it allocated $170,412 in October to cover public services, according to a report that reflects a monthly decrease of 1.9% compared to September, but a year-on-year increase of 26%, below the estimated inflation for the period.
In detail, the survey by the IIEP Rates and Subsidies Observatory (UBA-CONICET) showed that the average electricity bill was $33,438, with a slight drop of 0.8%; natural gas cost $28,759, with a decrease of 17.3%; and public transportation rose 2.3%, to $76,418, consolidating itself as the most important component within the basket. Tap water, meanwhile, amounted to $31,796, 4.4% more than the previous month.
Transportation, the area that increased the most in the year
In the year-on-year comparison, Transportation was the service that increased the most, with an increase of 36% compared to October 2024, surpassing the advance of the CPI. They were followed by natural gas (+24%), water (+18%) and electricity (+16%). The IIEP calculated that transportation spending explained 15 percentage points of the total increase in the basket (26 pp), while gas, water and electricity contributed 4 points each.
The monthly decrease, meanwhile, responded mainly to a seasonal reduction in gas and electricity consumption after winter. “The reduction in the basket is essentially explained by lower gas and energy consumption, which offset the rate increases,” stated the institute’s report.
The basket rises 514% since December 2023
From December 2023, The cost of the basket of public services in the AMBA accumulates an increase of 514%compared to an inflation of 171%. So far in 2025, the accumulated increase is 21%, with a price index estimated at 24%.
Currently, rates cover on average 50% of the real cost of services, while the State finances the remaining 50% through subsidies. However, coverage varies depending on the service and household income level, generating significant regional gaps.
Spending on services represents 10.7% of the average registered salary, estimated at $1,600,815, which is equivalent to 9.4 baskets of services per salary, compared to 8.5 in October 2024. “Transportation concentrates 45% of total spending and doubles the weight of any other service on income,” highlighted the IIEP.
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Fiscal adjustment and subsidy cuts
The report also analyzed andThe fiscal impact of the tariff policy. Between January and September, energy and transportation subsidies represented 6.1% of the State’s primary spending, which implies a drop of 54% year-on-year.
This cut was decisive in the consolidation of the primary surplus, since it explained 42% of the increase in the positive balance in the first eight months of the year.
During his presentation at the Budget Commission of Deputies, the coordinating secretary of Energy and Mining, Daniel González, pointed out that the official objective is to continue with the gradual reduction of subsidies, lowering its share from 0.66% of current GDP to 0.50% next year.
“What we are looking for is to gradually align the price that the consumer pays with the real cost of producing energy. It is a paradigm shift compared to previous years,” said the official.
Source: Ambito
