During the first half of 2024, food and beverages emerged as one of the hardest-hit categories in Argentina's consumer price index. The segment rose 79.6% in the six-month period, tracking closely with the general CPI of 79.8% — but concealing enormous variation beneath that headline figure. Certain staple products experienced price increases that far exceeded the average, fundamentally altering the consumption patterns of Argentine households across all income levels.
The products that led the surge
Within the food and beverages category, edible oils recorded the most dramatic increase, rising approximately 155% in the first half of 2024. Vegetables followed with a 130% increase, driven by supply disruptions and higher transportation costs linked to fuel price adjustments. Sugar rose around 120%. These categories, which form the backbone of everyday cooking in Argentine homes, saw price accelerations that drastically compressed household purchasing power. Bread and pasta — staple foods particularly relied upon by lower-income families — rose 88% over the same period, well above the general food average.
Impact on poverty measurement baskets
The acceleration in food prices had direct consequences for Argentina's official poverty and indigence measurements. The basic food basket (canasta alimentaria básica), which is used to define the indigence line, expanded by 84% in the first half of 2024. The basic total basket (canasta básica total), which sets the poverty line, rose 82% over the same period. As a result, a growing number of households found their incomes unable to cover even the most essential caloric needs. These figures are tracked in detail through our dashboard on inflation and relative prices, which provides monthly breakdowns by category and region.
A regressive impact: who bears the heaviest burden
Food inflation is not a neutral phenomenon — its effects fall disproportionately on lower-income households. Survey data shows that the poorest 20% of Argentine households allocate approximately 52% of their total income to food purchases, compared to roughly 20-25% for the wealthiest quintile. When food prices accelerate faster than general inflation, this structural difference translates into a severe erosion of real purchasing power for the most vulnerable segments. The differential impact of spending patterns across income groups is analyzed in depth through our dashboard on the national expenditure survey.
Government price programs: a partial buffer
In response to the surge, the national government maintained and expanded its "Precios Cuidados" price agreement program, which set reference prices for over 1,000 basic products in supermarket chains. Products included in the program recorded average price increases of 30–40% during H1 2024, significantly below the 79% average for the broader food category. While the program provided meaningful relief for consumers who had access to supermarkets stocking the listed items, its reach was uneven across the country and across retail formats. Smaller neighborhood stores and informal vendors, where a significant portion of lower-income households shop, operated largely outside the program's coverage.
Looking ahead to the second half of 2024, the pace of food price increases began to moderate as the initial shock from the December 2023 exchange rate adjustment gradually dissipated. Monthly food price growth decelerated steadily, though cumulative annual figures remained historically elevated. The interaction between food prices, household incomes and poverty rates continued to represent one of the central challenges for economic policy in Argentina throughout the year.
