According to a survey of the UBA, the services took 33% in the face of goods. As a consequence, services spending 49% to 59% in one year.
During the first year of Javier Milei’s government, the purchasing power of the middle class deteriorated. This happened following the greatest increase in the price of services, in relation to goods, which have a relevant weight in the consumption basket of this population segment.
According to a report from the RA center of the University of Buenos Aires, in 2024 59% of the middle class spending went to services, which represented an increase of 10 percentage points (PP) Regarding the previous year. In the period in question, the services 33% were more expensive Regarding the goods, so “while income struggled to follow the rhythm of general inflation, the cost of living shot down the services.”
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UBA
The work remarked that “The percentage increases in essential services were alarmingS “.” In the city of Buenos Aires, gas increased approximately 631%, transport by 707%, electricity by 390%and water about 350%, increases far above 129%that was seen in food spending. “
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UBA
“Salaries were insufficient to maintain social position. For a person to be considered middle class in the third quarter of 2024, their monthly income had to range between approximately $ 372,000 and almost $ 1,192,000. This implied an increase of around 125% in income from the beginning of the government to maintain that social position. However, the average increase in salaries nationwide was approximately 119% in the same period, “said the center.
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UBA
“The apparent salary recovery in the last quarter of 2024 fails to hide the reality of a middle class forced to redefine your lifestyle, sacrificing quality and limiting access to goods and activities that historically identified it. This scenario raises serious questions about the sustainability of purchasing power and the future of the well -being of this fundamental sector of Argentine society, “the report warned.
Source: Ambito
