Consumption plunges in Argentina despite Milei's optimism (worst than COVID and Corralito)

[Larry]

The numbers coming out are very ugly. Milei and his followers are trying to paint a different picture but look at the consumption numbers! They are terrible! Worst than during COVID and also after the corralito. Attempts to boost sales are failing. Terrible terrible numbers.

Consumption plunges in Argentina despite Milei's optimism

Consumption in Argentina has dropped below the pandemic and 2001 levels as the South American country's economy continues its erratic behavior under Libertarian President Javier Milei, whose administration depicts a different scenario. A survey conducted by the pollsters Scentia showed the loss...

en.mercopress.com

 

[Uncle Wong]

I didn't realize that consumption numbers were so low. That is terrible if it really is worse than during covid.

 

[Digital Nomad]

Yikes, hopefully this turns around soon but tough with higher transportation costs, utility bills, monthly expenses. Seems like many I talk to are really struggling with the economy.

 

[Melibaires]

Consumption saw the biggest drop so far this year. It’s clear that despite many measures meant to lower prices, they haven’t had any real impact. Prices keep going up, and the only ones holding steady are perishable food items, so people are cutting back on their shopping lists.

Fuerte derrumbe del consumo masivo: en agosto, las ventas en los supermercados cayeron 17,2%

De acuerdo con el informe mensual que publica la consultora Scentia, en los primeros ocho meses del año la caída acumulada llegó al 10,6%. Qué se espera para los próximos meses. Los efectos del “plan platita” del gobierno anterior

www.infobae.com

 

[Digital Nomad]

How much progress can there really be if so many skirt the rules and don't want to pay their fair share?

 

[Uncle Wong]

How much progress can there really be if so many skirt the rules and don't want to pay their fair share?

Wow that isn't just one or two people. That looks like a huge amount of people not paying. Didn't realize it was this extreme now. No wonder Argentina has so many problems. I guess this is probably why Milei wants to increase spending and put cameras everywhere so they can instantly recognize who is breaking the law with facial recognition.

 

[earlyretirement]

In February 2025, Argentina’s mass consumption experienced a 9.8% decline, marking the 15th consecutive month of contraction, according to consulting firm Scentia.

Consistent Downturn: This ongoing decline underscores persistent challenges in Argentina’s retail sector, with February’s drop following a 4% decrease in the same month of the previous year.

Gradual Improvement: Despite the prolonged downturn, there’s a silver lining. February marked the fifth consecutive month where the rate of decline slowed, suggesting that the market may have hit its lowest point in September 2024, when sales plummeted by 22.3%.

Detailed Breakdown:

• Supermarkets:

• Buenos Aires Metropolitan Area (AMBA): Sales decreased by 8.3%.
• Other Provinces: Experienced a 4.9% decline.

• Independent Self-Service Stores:
• AMBA: Faced a significant drop of 12.8%.
• Interior Regions: Saw a 12.5% reduction.

• Product Categories:

• Non-Alcoholic Beverages: Suffered the steepest decline at 19.8%.
• Alcoholic Beverages: Dropped by 16.2%.
• Impulse Consumption Products: Decreased by 10.5%.

• Laundry and Home Cleaning: Fell by 9.7%.
• Hygiene and Cosmetics: Declined by 8%.
• Breakfast and Snacks: Reduced by 7.7%.
• Food Items: Experienced the smallest drop at 4.9%.

These declines were consistent across both the AMBA and other provinces, with beverage categories experiencing the most significant reductions and perishable goods showing more moderate decreases.

Inflation Trends: February’s inflation rate rose to 2.4%, up from 2.2% in January. While this indicates a slight increase, the long-term trend suggests a gradual slowdown in inflation.

Argentina’s mass consumption sector continues to face significant challenges, with widespread declines across various sales channels and product categories.

However, the deceleration in the rate of decline offers a glimmer of hope for potential stabilization in the near future.

El consumo masivo cayó 9,8% en febrero y acumula 15 meses consecutivos de retroceso

Si bien se registra una desaceleración en la caída, los resultados en “rojo” se evidencian en todos los canales y rubros

www.infobae.com

 

[Larry]

In February 2025, Argentina’s mass consumption experienced a 9.8% decline, marking the 15th consecutive month of contraction, according to consulting firm Scentia.

Consistent Downturn: This ongoing decline underscores persistent challenges in Argentina’s retail sector, with February’s drop following a 4% decrease in the same month of the previous year.

Gradual Improvement: Despite the prolonged downturn, there’s a silver lining. February marked the fifth consecutive month where the rate of decline slowed, suggesting that the market may have hit its lowest point in September 2024, when sales plummeted by 22.3%.

Detailed Breakdown:

• Supermarkets:

• Buenos Aires Metropolitan Area (AMBA): Sales decreased by 8.3%.
• Other Provinces: Experienced a 4.9% decline.

• Independent Self-Service Stores:
• AMBA: Faced a significant drop of 12.8%.
• Interior Regions: Saw a 12.5% reduction.

• Product Categories:

• Non-Alcoholic Beverages: Suffered the steepest decline at 19.8%.
• Alcoholic Beverages: Dropped by 16.2%.
• Impulse Consumption Products: Decreased by 10.5%.

• Laundry and Home Cleaning: Fell by 9.7%.
• Hygiene and Cosmetics: Declined by 8%.
• Breakfast and Snacks: Reduced by 7.7%.
• Food Items: Experienced the smallest drop at 4.9%.

These declines were consistent across both the AMBA and other provinces, with beverage categories experiencing the most significant reductions and perishable goods showing more moderate decreases.

Inflation Trends: February’s inflation rate rose to 2.4%, up from 2.2% in January. While this indicates a slight increase, the long-term trend suggests a gradual slowdown in inflation.

Argentina’s mass consumption sector continues to face significant challenges, with widespread declines across various sales channels and product categories.

However, the deceleration in the rate of decline offers a glimmer of hope for potential stabilization in the near future.

View attachment 8903

El consumo masivo cayó 9,8% en febrero y acumula 15 meses consecutivos de retroceso

Si bien se registra una desaceleración en la caída, los resultados en “rojo” se evidencian en todos los canales y rubros

www.infobae.com

Let's face it the Milei experiment is failing.

 

[TonyTigre]

Before 2024, before Milei became president, how did the average Argentinian compare to other countries in terms of?:
1. Beef consumption
2. Alcohol consumption
3. Dining out / takeout food

In February 2025, how does the average Argentinian compare to other countries in terms of?:
1. Beef consumption
2. Alcohol consumption
3. Dining out / takeout food

I'm guessing that per capita, they still consume too much beef and alcohol compared to other countries.

"While recessions are generally seen as negative, one potential benefit is that they can lead to a reset of the markets and a chance to reevaluate priorities, potentially leading to better long-term financial decisions and lifestyle choices."

 

[Avocado]

Before 2024, before Milei became president, how did the average Argentinian compare to other countries in terms of?:
1. Beef consumption
2. Alcohol consumption
3. Dining out / takeout food

In February 2025, how does the average Argentinian compare to other countries in terms of?:
1. Beef consumption
2. Alcohol consumption
3. Dining out / takeout food

I'm guessing that per capita, they still consume too much beef and alcohol compared to other countries.

"While recessions are generally seen as negative, one potential benefit is that they can lead to a reset of the markets and a chance to reevaluate priorities, potentially leading to better long-term financial decisions and lifestyle choices."

Let's face it. Supermarket sales tell the truth. I don't blame people. The prices on many products are so expensive now. I was making less before but my salary went much further. Grocery stores and sales are always the truth in telling price distortions.

Let's face it. Things are bad.

 

[MikeYoung]

In February 2025, Argentina’s mass consumption experienced a 9.8% decline, marking the 15th consecutive month of contraction, according to consulting firm Scentia.

Consistent Downturn: This ongoing decline underscores persistent challenges in Argentina’s retail sector, with February’s drop following a 4% decrease in the same month of the previous year.

Gradual Improvement: Despite the prolonged downturn, there’s a silver lining. February marked the fifth consecutive month where the rate of decline slowed, suggesting that the market may have hit its lowest point in September 2024, when sales plummeted by 22.3%.

Detailed Breakdown:

• Supermarkets:

• Buenos Aires Metropolitan Area (AMBA): Sales decreased by 8.3%.
• Other Provinces: Experienced a 4.9% decline.

• Independent Self-Service Stores:
• AMBA: Faced a significant drop of 12.8%.
• Interior Regions: Saw a 12.5% reduction.

• Product Categories:

• Non-Alcoholic Beverages: Suffered the steepest decline at 19.8%.
• Alcoholic Beverages: Dropped by 16.2%.
• Impulse Consumption Products: Decreased by 10.5%.

• Laundry and Home Cleaning: Fell by 9.7%.
• Hygiene and Cosmetics: Declined by 8%.
• Breakfast and Snacks: Reduced by 7.7%.
• Food Items: Experienced the smallest drop at 4.9%.

These declines were consistent across both the AMBA and other provinces, with beverage categories experiencing the most significant reductions and perishable goods showing more moderate decreases.

Inflation Trends: February’s inflation rate rose to 2.4%, up from 2.2% in January. While this indicates a slight increase, the long-term trend suggests a gradual slowdown in inflation.

Argentina’s mass consumption sector continues to face significant challenges, with widespread declines across various sales channels and product categories.

However, the deceleration in the rate of decline offers a glimmer of hope for potential stabilization in the near future.

View attachment 8903

El consumo masivo cayó 9,8% en febrero y acumula 15 meses consecutivos de retroceso

Si bien se registra una desaceleración en la caída, los resultados en “rojo” se evidencian en todos los canales y rubros

www.infobae.com

Thanks for consistently providing good data. These numbers are alarming. I didn't realize it was 15 months of declining sales. This isn't a good sign. I wonder how his approval rating can be so high. I am starting to have doubts because many of my friends now in BA have turned and said they don't think things are getting better now.

 

[Betsy Ross]

Thanks for consistently providing good data. These numbers are alarming. I didn't realize it was 15 months of declining sales. This isn't a good sign. I wonder how his approval rating can be so high. I am starting to have doubts because many of my friends now in BA have turned and said they don't think things are getting better now.

It will be interesting to see how the polls do leading up to the elections. Generally the wealthier are doing ok but the poor it is hard to tell. Some surveys show poverty improving but it is difficult to know if it is getting any better. Approval ratings are high because people see that some prices are staying the same at the stores. But as others mention, there is only a finite amount of patience people will have. Prices didn't stop going up. Only the pace at which they are going up.

Some of my friends that supported Milei are also losing hope that things will turn around. That is really going to depend on if he is successful or not. Lots of things in the news lately with Libra scam, IMF deal pushing through, Supreme Court without approval, etc.

Milei on the tightrope: Congress to discuss $LIBRA scam, IMF deal and Supreme Court appointments - Buenos Aires Herald

Deputies could require the president and other public officials to justify Milei’s involvement in the cryptocurrency scam

buenosairesherald.com

 

[earlyretirement]

Before 2024, before Milei became president, how did the average Argentinian compare to other countries in terms of?:
1. Beef consumption
2. Alcohol consumption
3. Dining out / takeout food

In February 2025, how does the average Argentinian compare to other countries in terms of?:
1. Beef consumption
2. Alcohol consumption
3. Dining out / takeout food

I'm guessing that per capita, they still consume too much beef and alcohol compared to other countries.

"While recessions are generally seen as negative, one potential benefit is that they can lead to a reset of the markets and a chance to reevaluate priorities, potentially leading to better long-term financial decisions and lifestyle choices."

I think people need to keep things in perspective. Even though Argentines are at an all time low for beef consumption, keep in mind they are probably still consuming more beef than most people in the world. Beverages and alcohol have drastically gone up in price which explains the severe drop. Locals are used to going out to eat all the time and unfortunately when you have to tighten your budget, you have to cut back on things like that.

Just like utility rates. They were way too cheap. I'm not sure it was a good decision to raise rates so quickly vs. doing it over time but it was more of shock therapy which sometimes is needed after decades of mismanagement and false reality. Because electricity was so cheap and subsidized you would have a situation where people and businesses would keep the AC or heat blasting and all the doors open. People would keep their AC on at home even if they were going out. Even if they have tiny studio apartments and the split units could quickly cool their places.

Now, residents and businesses are having to reevaluate usage. As you mention @TonyTigre that can be a good thing to reset priorities. It's the same no matter which country or if it's a person, company or business. You can't spend more than you make. And that is a harsh reality that many are having to face.

No doubt it's been painful. I have many friends that are fairly well off and they were willing to do their part and pay higher costs if Argentina can finally dig itself out of its hole. Their costs have skyrocketed with healthcare, utilities, private school tuition, higher restaurant bills, higher grocery bills, higher salaries for employees or maids. But some are a bit skeptical now so much of this as Betsy correctly mentioned is a matter of how patient people will be.

 

[macaron]

I totally agree with a lot of what you said, especially regarding the need for people to adjust their spending and for the country to face reality after decades of mismanagement. However, I think there’s also another side to this.How is it possible that a country like Argentina, one of the world's top beef producers, now has the lowest beef consumption in its history? The prices have become so high that many people can't even afford a basic staple of their traditional diet.
I do understand that utility rates had to go up because they were unsustainably low, but I also think the adjustment should have been more gradual. The way it was done felt too abrupt, leaving many families struggling overnight, I still hold on to hope that things will improve because I love this country, its culture, and its people. But it’s heartbreaking to see that so many can't even meet their basic needs, like putting proper food on the table. And let's be honest, in a balanced diet, especially here, meat plays an important role. So while I understand and even support the need for change, I wish it could have been handled in a way that didn’t leave so many people behind. You can only really know how people are doing here if you live here.