Consumer confidence increased by 2% in July and rose by 18.6% year-on-year.

Consumer confidence experienced a 2% increase in July, reaching 46.37 points, the highest level since February. This was revealed by the monthly report from the Centro de Investigación en Finanzas (CIF) at Universidad Torcuato Di Tella, prepared by Poliarquía Consultores based on surveys conducted between the 1st and 16th of the month in 40 urban conglomerates across the country.

This rebound was mainly driven by a consolidated improvement in expectations for the acquisition of durable goods and a more optimistic outlook on income in broad sectors of society.

The context in which this improvement occurred was marked by exchange rate instability and interest rates. Added to this was the proximity of the legislative elections, which increased the level of uncertainty and kept the electoral climate as a backdrop. Nevertheless, consumer sentiment showed strength and improved compared to the previous month.

On a year-over-year basis, the Consumer Confidence Index (CCI) recorded an 18.6% increase, reflecting a positive trend compared to July of the previous year. Furthermore, in the last four months, the indicator advanced in three of them.

One of the main factors explaining this improvement is the deceleration of inflation and signs of economic recovery. In addition, indicators reflecting a recovery in income in certain sectors of the population also contributed to a more favorable perception of household well-being.

Sebastián Auguste, director of CIF, highlighted in the report that "higher levels were recorded in January and February 2025, during Javier Milei's current administration. Excluding those specific months, similar values hadn't been observed since November 2017, when Mauricio Macri's government was experiencing its best period before the Chief of the Cabinet of Ministers decided to intervene in the Central Bank, drastically changing the economic scenario."

In the first 19 months of Javier Milei's term, the general Consumer Confidence Index (CCI) accumulated a 16.5% increase. The evolution of this indicator is closely related to the behavior of inflation, employment, and access to credit. Although the July increase was moderate, at 2%, the year-over-year growth was considerable, consolidating a positive trend.

Available data show that society perceives its current situation as more favorable than its future expectations. This improvement is mainly associated with the increase in income and declining inflation, which allowed for a recovery of purchasing power.