The utility basket is relentless and represents a growing expense for families in the AMBA region: the details

Amid an economy that has yet to stabilize, the monthly cost of utilities for an average household in the Buenos Aires Metropolitan Area ( AMBA ) reached $193,329 in July , according to a report by the Tariffs and Subsidies Observatory of the Interdisciplinary Institute of Political Economy (IIEP) , which is part of the UBA and CONICET . The figure represents a 5.4% increase compared to June , and a worrying 40% more than in July 2024 .

The basket evaluated includes expenses for electricity , natural gas , drinking water , and public transportation . The main causes of the increase are the tariff adjustments implemented by the national government and the seasonal impact of winter , which increases electricity and gas consumption.

According to the study, from December 2023 to July 2025 , the total value of this basket soared by 597% , while the Consumer Price Index (CPI) rose by 154% , reflecting a strong mismatch between income and rates.

Within the monthly breakdown:

• Natural gas saw a combined increase in rates and consumption, with increases of 1.1% for the fixed charge and 1.8% for the variable charge .
• Electricity prices rose by 0.7% in fixed prices and by 2.4% in variable prices .
• Drinking water , in addition to a new tariff schedule, had an adjustment for the days of July.
• Public transportation , impacted by the increase in urban and interjurisdictional fares, rose an average of 5.1% .

In relative terms, this monthly expense represents 13.1% of the average recorded salary , estimated at $1,471,842 . Of that total, transportation is the largest item, with a 36% share. Meanwhile, the year-over-year comparison shows that transportation increased by 71% , while water increased by 33% , and electricity and gas increased by 26% each .

One of the most worrying data is that, despite the subsidy reductions , households still do not cover the entire cost: 50% is still absorbed by the national government , although tariff coverage has increased slightly in recent months.

According to the report, all residential users—even those with higher incomes—will continue to receive electricity subsidies through July , indicating that these transfers have not yet been effectively phased out.

At the same time, public service subsidies fell 57% year-on-year , with a 65% reduction in energy and a 26% reduction in transportation . In the case of water , the cuts were complete: 100% fewer transfers compared to last year.

Finally, the study links the reduction in subsidies to the fiscal surplus achieved by Javier Milei 's government. In the first half of 2025, the cuts amounted to $1.52 trillion , while the primary balance improved by $1.73 trillion , indicating a direct link between the tariff adjustment and the executive branch's fiscal target.