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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One thing you will have to get used to here as a foreigner is the lack of currency in circulation.   When you take money out of a bank machine, you are usually given either 100 or 50 peso bills.   If you’re lucky, you may be able to get some 10s or 20s, but don’t count on it.  Unfortunately, 50s and 100s are rarely accepted in smaller locales.  So you are often stuck in situations where you have these very large bills, but but you can’t pay with them.  These bills are usually accepted in restaurants, supermarkets, and clothing stores.  Therefore, be sure to save your smaller bills for when you are paying in smaller locales, like kiosks, taxis, little bars, etc.

Another even bigger problem with the Argentine currency is the lack of small pocket change.  Once again, this is mostly a problem in smaller locales, but you will almost always be asked to help out with change anywhere you go.  If something is $220, you are expected to give $2.20, or $2.25 if you can.  If you are buying something at a kiosk, using a computer, making a phone call, at the subway, or buying something in a bakery, you will definitely need to use change.  For example, if something costs $2.20, paying with a $5 peso bill will not likely be accepted.  This becomes very difficult.  Everywhere you go, people expect you to use your change; however, you need as much change as possible, because you will need to use it on the buses, and in these stores.

I have been turned away many times from kiosks for not having exact or close to exact change.  That is how bad the problem is – certain places will actually turn away business for lack of change.  The Subte actually stops charging passengers from time to time when they don´t have enough change.  They do this to avoid violence, because the argentines can become very upset about this lack of change (and you can´t blame them, it gets very frustrating)!!!

It is important you know these “unwritten rules” when you are living or visiting Buenos Aires.  If you do not, you will likely upset or fluster the employees, and could receive some piercing stares, or some grumbling.  Just try to remember, it is not the fault people in the stores, even though sometimes it feels that way.  No one in all of Argentina is happy about this, so it is important that everyone collaborates and tries to minimize the problem.

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