If you save in pesos, inflation chips away at your purchasing power every month even if your balance stays the same. Here, we explain what it is, how INDEC measures it, how much your savings can lose in 12 months, and what options exist to protect them.

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What is inflation and why does it change what you can buy?

A coffee with milk that cost $1,500 a year ago might cost $2,000 today. The difference between those two prices, multiplied by every product and service you consume, is what inflation measures.

Understanding what inflation is doesn't require studying economics, because you already experience it every time the same salary covers fewer things than the previous month.

INDEC measures that change through the Consumer Price Index (CPI), which tracks the prices of a representative basket of goods and services consumed by an average household in Argentina.

When you hear that a month's inflation was 4%, it means that basket went up by 4% compared to the previous month. Because that percentage compounds month after month, the effect over 12 months is much greater than simply adding up the monthly figures.

Argentine inflation has roots that range from excessive monetary expansion to supply chain disruptions or increases in international costs.

Economists identify three types of inflation, and each responds to a different trigger:

• Demand-pull inflation occurs when price increases stem from a widespread rise in what consumers and businesses want to buy, pushing prices upward.

• Cost-push inflation comes from the production side, whether due to rising energy costs, imported inputs, or wages, and producers pass that increase along to the final price.

• Built-in (or inertial) inflation sets in when expectations of future price increases become embedded in the behavior of businesses and consumers, causing prices to rise even without a new trigger.

Understanding these types helps explain why some economic policy measures work and others don't, but for anyone saving in pesos, the practical result is the same: with each passing month, that money buys less.

How much do your peso savings lose in 12 months?

Let's suppose you have $1,000,000 kept in a non-interest-bearing savings account.

With an annual inflation rate of 33.4% (the figure reported by INDEC for September 2026), the purchasing power of that million drops to approximately $750,000 in real terms.

What you can buy today for one million will require $1,334,000 a year from now to get, yet you still have that same million.

Take your amount, divide it by 1 plus the inflation rate expressed as a decimal (in this case, 1.334), and the result is the real value of your pesos at the end of the period.

With $1,000,000 divided by 1.334, you get $749,625. The difference, close to $250,000, is purchasing power that vanished without you lifting a finger.

Example of loss of value with 33.4% inflation

Try the exercise with your own numbers. Take what you have saved in pesos, divide it by 1.334 (or by the cumulative inflation that INDEC reports in the coming months), and look at the result.

That gap between what you nominally have and what you can buy is precisely what is at stake when you decide where to keep your money.

How can I protect my savings from inflation?

Once the loss has a concrete number, the question changes. It's no longer about whether it makes sense to do something, but what options exist and what each one costs.

The first alternative that comes up is the US dollar. Holding savings in a benchmark foreign currency has been the most direct way to escape the loss of purchasing power in pesos.

The advantage is clear: the dollar doesn't lose value at the pace of the Argentine peso, and its liquidity is high because there's always demand.

The risk lies in the exchange rate gap across different currency markets and in access costs, which with traditional bank cards can include tax withholdings and conversions at the official exchange rate that don't reflect the true market value.

If you want to explore more about how to exchange dollars to pesos conveniently, there are guides tailored specifically for freelancers and people who earn in foreign currency.

Stablecoins (digital currencies pegged to the dollar, such as USDT or USDC) offer a complementary path. They work like digital dollars that you can buy, hold, and convert without relying on a foreign bank account.

Their main advantage is accessibility, as they are managed directly from your phone, along with conversion speed. The risk lies in understanding that they are not dollars in a regulated bank account, but digital assets whose backing depends on the issuing company.

On belo, for instance, you can convert pesos to stablecoins like USDT or USDC and hold them in the app, with an exchange rate visible before confirming each transaction, giving you predictability over what you receive.

Local inflation-adjusted assets, such as UVA fixed-term deposits or CER bonds, aim to match or beat changes in the CPI. The advantage is that they are denominated in pesos and designed to protect capital in real terms.

The downside is that they require a minimum holding period (90 days for UVA fixed-term deposits), which reduces liquidity. If inflation cools down faster than expected, the yield may fall behind other alternatives.

Comparison of options to protect your savings

• Physical or bank-deposited US dollars offer high liquidity and historical protection against the peso, although access can involve tax costs and exchange rate spreads that reduce what you actually receive.

• Stablecoins like USDT or USDC combine dollar parity with the speed of digital transactions from your phone, though their backing relies on the issuing company rather than a regulated bank.

• Inflation-adjusted instruments, such as UVA fixed-term deposits or CER bonds, protect capital in real terms but require a minimum lock-up period that limits access to funds in the short term.

None of these options is perfect, nor are they presented as personalized investment advice. The decision depends on how much liquidity you need, how long you can leave the money untouched, and what level of risk you are willing to take.

Your next step with your own numbers

Protecting your savings starts by measuring how much you are losing. If you've never run the numbers, now is the time.

Go to the INDEC website, look up the cumulative CPI for the last 12 months, and divide your peso savings by that number expressed as 1 plus the rate in decimals. The gap that appears between the nominal and real amounts is your starting point.

With that data in hand, decide what percentage of your savings you want to protect and with which instrument. There is no need to move everything at once or stick to a single option.

Many people combine some liquidity in pesos for everyday expenses, a portion in stablecoins to preserve value without losing quick access, and potentially an inflation-adjusted instrument for the medium term.

If you prefer that process to run on autopilot, on belo you can automate your savings in pesos, dollars, euros, or cryptocurrencies to reach your goals without having to remember every month.

It's a good idea to monitor the CPI data each month, as Argentine inflation can change pace quickly, and what worked six months ago may need adjustments.

It's not about becoming a macroeconomic expert, but about having an up-to-date figure that tells you whether your strategy is still working or if the purchasing power of your savings is dropping faster than you thought.

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Frequently asked questions about what inflation is and how it affects your savings

Does inflation affect all peso savings equally, regardless of which bank they are in?

Yes, because inflation erodes the purchasing power of the currency itself, not of the bank holding it. A peso in any non-interest-bearing savings account loses value at the same pace as general inflation, regardless of the financial institution.

Is it advisable to combine more than one option to protect savings?

Many people split their savings across different instruments depending on the liquidity they need and how long they can keep the money locked up. Holding a portion in stablecoins and another in an inflation-adjusted instrument reduces reliance on a single asset type.

What is the difference between monthly inflation and annual cumulative inflation?

Monthly inflation measures the change in prices compared to the previous month, whereas annual cumulative inflation compounds the effect of all months of the year. Because percentages multiply together rather than add up, the cumulative figure is always greater than the simple sum of the monthly values.

Are stablecoins protected if the issuing company goes bankrupt?

There is no government guarantee equivalent to the one that covers bank deposits. The backing of a stablecoin depends on the assets the issuing company claims to hold in reserve, so it is advisable to research the issuer before transacting with significant amounts.

How often does INDEC update CPI data?

INDEC publishes the index monthly, generally within the first few weeks of the month following the one being measured. Checking it with that regularity allows you to keep your calculation of the real value of your savings up to date.