Argentina Retail Sales: December 2025 Sees 16.1% YoY Rise & Price Variations

Buenos Aires – Argentina’s retail sales growth slowed in December 2025, rising 16.1% year-on-year to ARS 875,044.4 million, according to recently released figures. This represents a deceleration from the 17.3% increase recorded in November.

The figures, released on February 25, 2026, reveal a mixed picture of consumer spending in the South American nation. While overall sales continue to climb, the rate of growth is diminishing, and a closer look at price adjustments reveals underlying economic pressures.

The most significant gains at current prices were observed in several key sectors. Restaurants and food stalls, along with kiosks, led the way with a substantial increase of 34.9%. This was closely followed by furniture, home décor, and textiles, which saw a rise of 34.8%. Bookstores and stationery shops experienced a 23.5% increase, while toy stores recorded a growth of 16.0%.

Geographically, the City of Buenos Aires demonstrated the strongest performance, with sales climbing 18.9% to ARS 266,884.0 million. Greater Buenos Aires also showed positive growth, registering a 12.8% increase to ARS 287,200.2 million. These figures suggest a concentration of consumer activity in and around the capital.

However, a crucial detail emerges when considering constant prices. While nominal sales increased, retail sales actually declined by 2.4% year-on-year to ARS 10,009.5 million when adjusted for inflation. This indicates that the increase in sales value is largely attributable to rising prices rather than increased volume of goods sold.

This divergence between nominal and constant price sales figures underscores the persistent inflationary pressures facing the Argentine economy. January 14, 2026, FocusEconomics reported that consumer prices were up 31.5% in annual terms in December, a slight increase from the 31.4% recorded the previous month. This sustained inflation erodes purchasing power and complicates economic forecasting.

The slowdown in retail sales growth comes after a period of relative acceleration. In November, retail sales had risen by 17.3% year-on-year, a jump from the 15.1% increase seen in October. The recent deceleration suggests that the initial boost from post-pandemic recovery and government stimulus measures may be waning.

Argentina has struggled with economic instability for years, characterized by high inflation, currency devaluation, and sovereign debt crises. The country’s economic policies have often been subject to significant shifts, creating uncertainty for businesses and consumers alike. The current administration has implemented various measures to curb inflation, including interest rate hikes and fiscal austerity, but their effectiveness remains to be seen.

The performance of the retail sector is a key indicator of overall economic health. A slowdown in retail sales can signal weakening consumer confidence and reduced economic activity. While the nominal increase in sales suggests some level of demand, the decline in constant price sales raises concerns about the sustainability of this growth.

The strong performance of specific sectors, such as restaurants and furniture, may reflect changing consumer preferences or a shift in spending patterns. The increase in sales of books and toys could indicate a return to more normal consumption habits after periods of lockdown and economic hardship. However, these trends need to be monitored closely to determine their long-term implications.

The concentration of sales in Buenos Aires and its surrounding areas highlights regional disparities in economic performance. While the capital city benefits from greater economic activity and investment, other regions of the country may be lagging behind. This uneven development poses challenges for policymakers seeking to promote inclusive growth.

The Argentine economy remains vulnerable to external shocks, such as fluctuations in global commodity prices and changes in international financial conditions. The country’s high level of debt and dependence on foreign capital make it particularly susceptible to economic instability. The recent slowdown in retail sales growth serves as a reminder of these vulnerabilities.

Looking ahead, the outlook for the Argentine retail sector remains uncertain. The persistence of high inflation, coupled with ongoing economic challenges, could continue to weigh on consumer spending. The government’s ability to implement effective economic policies will be crucial in determining the future trajectory of the economy.