Pharmaceutical Sector Hit Hard by Devaluation

The recent economic measures implemented by the Javier Milei government, specifically the termination of price controls on April 14th, have sent ripples thru the Argentine economy. One of the most immediate impacts has been felt in the pharmaceutical sector, where a notable portion of medications have experienced price increases.

According to a survey conducted by the Price Observatory of the College of Pharmacists of Córdoba, a substantial 40% of medications saw their prices rise following the policy change. this translates to 7,954 out of 19,168 products experiencing price hikes.

Every month the pharmaceutical industry increases following inflation.

Diego Miranda, Vice President of the College of Pharmacists of Córdoba

These increases occurred primarily in early April and then again between the 14th and 17th, directly coinciding with the initial days after the end of price controls. The report further indicates that on April 14th, several pharmacy chains adjusted prices, with over 1,600 products experiencing an average increase of 3%. This situation exacerbates the financial strain on vulnerable populations, particularly retirees, whose basic needs are increasingly arduous to meet. For context, the basic retiree basket is $1,200,523, and the government bonus added to the minimum retirement covers less than 30% of retiree expenses.

While the average increase across all medications is around 1.4%, focusing solely on the products that experienced price changes reveals a more significant average increase of 3.5%. This suggests that while some medications remained stable, a considerable portion saw substantial price jumps.

The free flotation of the dollar price has also played a role, with some laboratories reportedly applying an “extra rise” to certain products. This phenomenon mirrors similar trends observed in supermarkets, where price reductions are rare once increases have been implemented.

Construction Materials Also Affected

the construction industry in Córdoba is also grappling with the effects of Milei’s economic policies. Price increases in essential building materials are threatening to stall projects and further strain the sector.

Fabio marcial, owner of a construction supply business in Córdoba, reports a 12% increase in the price of iron due to the government’s economic measures. Ceramic bricks have seen an even more dramatic surge, with a 45% increase over the past two months, including a 5% rise in the last month alone. The increases have been happening daily for at least two months, Marcial stated.

Despite these rising costs, profit margins in the construction supply sector remain thin. Companies are 70% below the value they should be, Marcial explained, indicating an attempt to recover profitability as the construction season begins. This situation is further complicated by the fact that customers are actively seeking the best possible prices, often shifting budgets between different suppliers.

While demand is currently low, there are signs of increased construction activity. However, builders who haven’t made prior investments are now forced to use their accumulated capital to initiate projects. Certain materials,such as paint,have seen year-on-year increases of up to 40%,while others,like masonry,have experienced increases of 90%.

The Construction Cost Index of Córdoba (ICCBBA) registered a monthly variation of 0.9% in March 2025, and a 49.9% increase compared to march 2024.This data underscores the significant inflationary pressures facing the construction industry.

There are grate players in the market that sell below costs.

Fabio Marcial,owner of a construction supply business in Córdoba

economic Crisis deepens

The devaluation imposed by President Milei is exacerbating the economic crisis across various sectors. The pharmaceutical and construction industries are just two examples of how these policies are impacting businesses and consumers alike. As inflation continues to rise, argentinians face increasing challenges in affording essential goods and services.