Inflation in Buenos Aires

Argentine Money — By

Inflation is one of some serious problems in Argentina, and anyone planning on being here for an extended period of time should take it into account.   I arrived in March of 2007.  Since that time, the “official inflation” (the inflation rate according to the government) is around 10%.  However, this is just a big joke.  Everyone in Argentina, including the government, knows that inflation is much higher.  Some independent economists have estimated the real inflation rate is around 25%, and not going down.  This sounds about right to me, although there are many prices that have doubled, or more than doubled since I´ve been in Argentina.

A few examples:

  • At McDonald´s, they have about 6 items that are on the cheap menu. A small fries, a hamburger, a chocolate sunday, etc. When I arrived last year, these items were $2 each. The price now is $4.50.
  • Internet when I arrived (the cheapest I could find) was $.50 an hour. In these same internet cafes, it now costs $0.50 for 20 minutes, or $1.50 an hour.
  • Facturas (pastries) could be bought for as low as $.40. The cheapest now are around $0.70.

These are just some of the extreme examples.  All prices have gone up, and will continue increase at around 25%.  One of the things that has gone up the most is food.  The prices of food here are affected by many factors, which is why the prices are changing so often, both up and down.  Many of the vegetables and fruits have more than doubled in price since last year.  Potatoes, onions, and lemons, among others, are all much more expensive.  Potatoes and onions cost somewhere in the $3 peso mark per kilo.  Sometimes it is difficult to believe that such standard, basic foods are so expensive.   It has made Argentines very unhappy.

So when you come to Buenos Aires, or if you already live here, don´t be surprised when you see the prices increasing regularly.  It may make living more difficult for you, and can be very frusteratiing.  Howver, when I get upset about inflation and how it affects me, I just think how difficult it is for Argentines who are just above the poverty line.  These price increases are not followed by increases in salary, and has greatly increased poverty here.    We can only hope the situation improves before too long.

Inflation is a huge problem in Argentina, and anyone planning on being here for an extended period of time should take it into account.I arrived in March of 2007.Since that time, the “official inflation” (the inflation rate according to the government) is around 10%.However, this is just a big joke.Everyone in Argentina, including the government, knows that inflation is much higher.Some independent economists have estimated the real inflation rate is around 25%, and not going down.This sounds about right to me, although there are many prices that have doubled, or more than doubled since I´ve been in Argentina.

A few examples:

-At McDonald´s, they have about 6 items that are on the cheap menu.A small fries, a hamburger, a chocolate sunday, etc.When I arrived last year, these items were $2 each.The price now is $4.50.

-Internet when I arrived (the cheapest I could find) was $.50 an hour.In these same internet cafes, it now costs $0.50 for 20 minutes, or $1.50 an hour.

-Facturas (pastries) could be bought for as low as $.40.The cheapest now are around $0.70.

These are just some of the extreme examples.All prices have gone up, and will continue increase at around 25%.One of the things that has gone up the most is food.The prices of food here are affected by many factors, which is why the prices are changing so often, both up and down.Many of the vegetables and fruits have more than doubled in price since last year.Potatoes, onions, and lemons, among others, are all much more expensive.Potatoes and onions cost somewhere in the $3 peso mark per kilo.Sometimes it is difficult to believe that such standard, basic foods are so expensive.It has made Argentines very unhappy.

So when you come to Buenos Aires, or if you already live here, don´t be surprised when you see the prices increasing regularly.It may make living more difficult for you, and can be very frusteratiing.Howver, when I get upset about inflation and how it affects me, I just think how difficult it is for Argentines who are just above the poverty line.These price increases are not followed by increases in salary, and has greatly increased poverty here.We can only hope the situation improves before too long.

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