shot back up to 39.2% in the second half of last year from 36.5% in the first half, the government said on Thursday, as inflation eroded the purchasing power of wages.
"The thing is that increases in working people's incomes have been lower than the inflation of the overall basic food basket," said Martín González Rozada, an economist and professor of econometrics at the Universidad Di Tella.
He added that poverty was likely even higher than 40% in the early part of this year and pointed out that around half of the country's children lived in poor households.
Government handouts and subsidies have kept down levels of extreme poverty, but that may come under pressure as the state tries to overturn a deep fiscal deficit and reduce spending as dollars are scarce and a drought has hit the key farming sector. Many of Argentina's nearly 46 million people are unable to pay for the total basic basket of goods and services, which costs 177,000 pesos per month (some $849). Armoa, even with his three salaries and income from his wife, a teaching assistant, often struggles to get by. "With the issue of the price of things, it's difficult to live. But hey, sometimes we get there and sometimes we have scrape by to get there," said Armoa while chopping onions at his home to improvise a dinner. "You have to put a positive face on things, good energy and think that tomorrow things will be better." (Reporting by Miguel Lo Bianco and Lucila Sigal; Editing by Nicolas Misculin, Adam Jourdan and Richard Chang)
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