The professional, salaried middle class is falling into poverty. And those who were already poor collapse into poverty. This social decline explains the growth of people and families living in conditions of extreme poverty, without income to purchase basic foods. The city of Buenos Aires, the one with the greatest resources, is no exception.
In January, in the city of Buenos Aires, the family poverty basket approached $600,000. And with the price and rate increases being implemented these days, the poverty line for February is expected to be around $700,000, not including the value of rent.
Meanwhile, to be considered middle class, a typical household must have had an income above $888,116 in January, not including rent. If they rent, they should have an income above $1,100,000 per month.
The data comes from the Directorate of Statistics and Censuses of the CABA and indicates that, in January, in order not to be poor, A typical family (married couple and 2 children) must have earned more than $590,042, 19.25% more than in December and 261.24% more than the January 2023 value.
For its part, due to the soaring prices of food products, especially meat, bread, fruit and vegetables, the poverty threshold rose from 290,411 dollars in December to 350,564 dollars in January, an increase of 20.71%. and 290.22% higher than the January 2023 value.
Meanwhile, to be considered middle class, that typical household had to have an income above $888,116 in January. In all cases, excluding rent.
With these values, if a modest rent ($590,042) is added to the family poverty basket, a typical family (married couple and 2 minor children) would need more than $750,000 to avoid being poor.
Data from the Directorate of Statistics and Censuses of Buenos Aires show that, compared to a year ago, the poverty threshold for a typical family has increased by 290.22% (350,564 dollars against 89,837 dollars in January 2023). And the poverty line became more expensive by 261.24% (from $163,339 to $590,042).
In both cases this is a higher increase than the average interannual inflation which, in the CABA, was 238.5%.. Therefore, inflation hit low-income families hardest.
The poverty line of $590,042 exceeds the national average compensation of formal wages, which as of December was $484,298 according to RIPTE (Average Taxable Earnings of Stable Workers).
The main food increases in the CABA in January were: Bread and cereals (27.9%), Milk, dairy products and eggs (28.1%) and Meats and derivatives (17.2%).
Source: Clarin
