(MENAFN- The Rio Times) Argentina's consumer prices rose 2.1% in September, the fastest monthly pace since April. Inflation now stands at 22.0% for the year to date and 31.8% over the past 12 months.

The jump came largely from services: housing and utilities, and education led the move, while restaurants and hotels also stayed hot. By contrast, food inflation-still crucial for household budgets-has been slower than the headline rate over the year.

Behind the headline lies a simple story: services that families cannot easily skip are getting pricier, and wages aren't keeping up. Education costs are up 62.2% year-on-year; housing and utilities 49.3%; restaurants and hotels 48.7%.

Food is 27.3% higher than a year ago, and transport 27.4%. Several recent wage readings have lagged these increases, meaning many workers lose purchasing power even when price growth looks“contained.”

September's reading also reflects a month of currency jitters and a charged run-up to the October 26 legislative elections. In this environment, regulated tariffs and service fees tend to do more of the lifting in the index.



Price-setting behavior can drift when the exchange rate wobbles and expectations turn fragile, even if the pass-through is not dramatic.
Argentina inflation bites essentials
For households, the squeeze shows up in non-negotiable monthly bills-rent, utilities, school fees-and in the cost of basic baskets used to define poverty thresholds. For small firms, uncertainty about future costs complicates pricing and hiring.

For outsiders watching Argentina , the mix matters: when services drive inflation while incomes trail, consumption softens, business confidence sags, and social stress rises.

What to watch next: the exchange rate; any adjustments to regulated utility and transport tariffs; fourth-quarter wage bargaining; and post-election policy signals.

A steadier currency and credible income-price guidelines would help keep monthly inflation near 2% without eroding living standards further. The opposite would prolong the pressure on real wages and demand.

Bottom line: inflation is no longer spiraling, but it is biting where it hurts most-essential services-at a time when many paychecks can't keep pace.

MENAFN15102025007421016031ID1110199402