The Cámara Argentina de Comercio y Servicios (CAC) announced on Apr. 23 that its Consumption Indicator (IC) showed a year-on-year decrease of 1.3% in March, with a seasonally adjusted decline of 0.5% compared to February.
This indicator, developed by CAC, tracks the monthly evolution of household consumption in final goods and services. The latest figures highlight ongoing challenges after a first quarter marked by both declines and stagnation, following positive variations seen during the same period last year.
The report links this drop in consumption to rising prices, noting that inflation has accelerated since mid-2025. In March, the Consumer Price Index (CPI) rose by 3.4%, marking more than six consecutive months with inflation above 2%. The report also mentions external factors such as increased global fuel prices due to conflict in the Middle East and seasonal effects like the start of the school year contributing to higher inflation rates.
When examining different sectors within the index, clothing and footwear saw a slight increase of 0.6% year-on-year but did not significantly impact overall results. Transportation and vehicles recorded a modest growth of 0.8%, while recreation and culture fell by 2.9%. Housing, rentals, and public services experienced a decrease of about 0.8%. Other categories combined for an annual drop of 1.9%, bringing consumption levels close to those observed before the pandemic.
Fast-moving consumer goods registered an interannual decline for February as well, dropping by 3.4% from last year and decreasing slightly from January on a seasonally adjusted basis.
The credit market also reflects these trends: after strong growth through most of last year, lending has recently stabilized or slowed across various types except mortgages which continue their upward trajectory.
In summary, mass consumption appears to have paused its recovery while durable goods face uncertainty regarding future performance after two years of improvement.
