A coffee for $3.50: Argentina is the most expensive country in Latin America

[Che1990]

I was in San Telmo today once known to be a working class suburb . It was mainly empty everywhere very unusual for a Friday but with the prices on offer I could clearly see why .

These are some examples from a icrecream shop Lucianos . One icecream cone medium size 5600 pesos . One kilo of icecream 16000 pesos . One icepop 5800 pesos basically iced water and coloring . This is the link for its products take away . I looked online in Europe and everything was 50% cheaper in Italy Greece and United Kingdom

This is just one company in United Kingdom doing a similar product and it was less than 50 percent in us dollars.

The Real Italian Ice Cream Company Menu Deals & Prices - Bath Delivery - Order with Uber Eats

Use your Uber account to order delivery from The Real Italian Ice Cream Company in Bath. Browse the menu, view popular items and track your order.

www.ubereats.com

Productos

Tienda online Lucciano’s: Chocolates, Alfajores, Conitos, Cremas Premium y Gift Cards. Especialistas en Pistacchio. Envíos a toda la Argentina.

tienda.luccianos.net

I went inside the san telmo market mainly empty . A coffee at coffe store take away 4500 pesos . a kilo of bananas 3500 from a normal verduleria . un kilo of chicken milanesa from a chicken shop 11000 pesos . Lunch specials were 18000 pesos for a milenesa or a tarta de espinaca or a pasta dish . Meat dishes of 200 grams were minimum24000 pesos and in the restaurant Hierro 48000 pesos for a steak . All empty . Now I looked online at 5 major food markets in Madrid . Melbourne Australia . Athens . Roma . Los Angeles and in all cases prices were significantly less and portion sizes significantly larger!

I felt the same the other night walking the dog around Palermo. Warm Wednesday night in February, usually everywhere would be quite busy. But not. Everywhere was empty.

 

[Ries]

Those prices are crazy! The San Telmo market has always been expensive, but the prices you are quoting are just off the hook. No wonder the place was empty. I mean, 48K for a steak, who's going to pay that?



Something has to give soon. There's no way this can continue until the end of the year. I just had my rent raised again, the third time in the last year.

current Don Julio prices are 70,000 to 85,000. and there is usually a line. so, somebody.

 

[Ries]

It was "too" cheap for people with foreign currency, for Argentines, at least most of them, have never been too cheap.

If we take Europe as an example, let's say Spain, because it's somewhat in the middle, has similar taxation, labour laws etc. At the end of 2023 before devaluation, prices were approximately 20 to 50% lower here. Now they are around that much higher. Argentines are suffering, but their perception is blurred, because salaries went a bit higher, they are used for prices to jump... Bigger difference is of course for people with foreign currencies, because we were not used to be on receiving end, and now prices are objectively too high, comparing to many developed countries.

And it's not the same even for Argentines, some are getting rises and are maybe even better off than before, while majority is really struggling. Strange is the lack of complaining to me, but I guess it was always like this...

the difference between Argentina and Spain is not labor laws, or taxation, although Spain has a more progressive tax situation.
The difference is Spain is in the EU, with much free-er trade, and Argentina has a byzantine network of taxes, tariffs, rules, laws, delays, and frictional costs on pretty much all imports, and it also has very strict laws about moving money in and out of the country.

Milei professes to want to change these things, but has done almost nothing to do so.
And the current recession, and huge jump in the costs vs the salaries, is all on Milei.
He did it on purpose. He thinks the magic unicorn will appear under the rainbow, and suddenly we all will be rich.

 

[mikic007]

the difference between Argentina and Spain is not labor laws, or taxation, although Spain has a more progressive tax situation.
The difference is Spain is in the EU, with much free-er trade, and Argentina has a byzantine network of taxes, tariffs, rules, laws, delays, and frictional costs on pretty much all imports, and it also has very strict laws about moving money in and out of the country.

Milei professes to want to change these things, but has done almost nothing to do so.
And the current recession, and huge jump in the costs vs the salaries, is all on Milei.
He did it on purpose. He thinks the magic unicorn will appear under the rainbow, and suddenly we all will be rich.

I agree, I only wanted to point out prices in general and how much out of reality they are.

I mean, it doesn't come as surprise, we knew from the start how it will go. Honestly, I thought he would destroy public sector more, and do more damage all over the place, but there is still time...

 

[steveinbsas]

In reply to this:

... even though my COL (without rent and with food and utilities priced almost equal to CABA) trippled in USD in 2024 (from $165 to $495 USD per month), I have no desire to live anywhere else on the planet, let alone in any other Latin American country, even if any (if not many) of them currently have a lower COL.

Chris wrote this:

I wonder if most expats feel that way. Maybe people can tell us just how expensive it has to get before they give up and leave.

It would be very interesting to know how other "expats" feel about leaving Argentina and how expensive is actually too expensive for them to stay.

My cost of living is lower than for many expats because I don't pay rent or often eat meals in restaurants (twice since 2012). Today I bought 3 kilos of pata muslo for $2.900/kilo. The total cost of the five pieces of chicken was $8.700 ($1.740 c/u. On Monday I paid $6.400 for 20 extra large farm fresh eggs.

I also buy beef, butter, beef tallow, coffee, whole milk, heavy cream, white vinegar, and bottled water. I have only eaten meals in restaurants twice since moving to my present location in late June, 2010.

Even if my income was much greater, I would never eat anything besides beef in restaurants. and only then when I have a very special visitor (twice since I moved here/both times in 2023). Otherwise, I can prepare meals at home at a much lower cost and also be sure about the quality of the food I am consuming. My health is of much greater concern to me than it will ever be to any restaurant owner. Occasionally, I also eat asado with friends. We almost always buy the beef from the same butcher.

So, the bottom line cost-wise for me at the moment is $500 USD per month/$16.50 per day and, with a monthly income of $800 USD, my daily COL could be increased to $26 USD. If and when that threshold is passed, I will start selling assets (aka: inventory) which I began acquiring in Argentina in 2006. I have no exit strategy regarding leaving the country and I seriously doubt that I will ever need one.

 

[perry]

current Don Julio prices are 70,000 to 85,000. and there is usually a line. so, somebody.

This is not the current price per person this is the price for the main course a ojo de bife or a bife de chorizo . To eat a three course meal with wine and tip in Don Julio the price is minimum 140 mil pesos per person . Of course there will be a line as its rated as the best parilla on the planet and for a wealthy person US$ 120 per person is reasonable !

 

[Cruz009]

I don't know man. This country is just bizarre and confusing. Prices are skyrocketing, but local people seem to enjoy life more than an expat like me. Airports are always packed with people going for vacasiones. Some local stores are closed for a month during summer holidays (I mean, how can they afford not earning business income for a month??).

My local work friends brag about vacations in Rome and Switzerland. Even my chaffeur who earn just a super tiny portion of what I earn are going for holidays at some beaches in Brazil and Mexico, while I keep on contemplating even to go to El Calafate.

Maybe I'm living in the BA bubble, I don't know. I have a feeling that Argentines have been getting decades of handouts and they actually enjoy so many economic privileges before, that they actually saved a lot of money and this "superficial inflation" is just making them save less.

 

[Ries]

I don't know man. This country is just bizarre and confusing. Prices are skyrocketing, but local people seem to enjoy life more than an expat like me. Airports are always packed with people going for vacasiones. Some local stores are closed for a month during summer holidays (I mean, how can they afford not earning business income for a month??).

My local work friends brag about vacations in Rome and Switzerland. Even my chaffeur who earn just a super tiny portion of what I earn are going for holidays at some beaches in Brazil and Mexico, while I keep on contemplating even to go to El Calafate.

Maybe I'm living in the BA bubble, I don't know. I have a feeling that Argentines have been getting decades of handouts and they actually enjoy so many economic privileges before, that they actually saved a lot of money and this "superficial inflation" is just making them save less.

If you have a chauffeur, then yes, I suspect a bubble. Ask him to give you a tour of the Conurbano…

 

[JeffR]

This is not the current price per person this is the price for the main course a ojo de bife or a bife de chorizo . To eat a three course meal with wine and tip in Don Julio the price is minimum 140 mil pesos per person . Of course there will be a line as its rated as the best parilla on the planet and for a wealthy person US$ 120 per person is reasonable !

Exactly! I was going to add that the "somebody" is tourists who buy into the idea that Don Julio is the best steakhouse in the world. Ate there about a year ago; it was easily the worst food and service compared to smaller neighborhood places.

 

[Lanick]

Exactly! I was going to add that the "somebody" is tourists who buy into the idea that Don Julio is the best steakhouse in the world. Ate there about a year ago; it was easily the worst food and service compared to smaller neighborhood

That’s what I say always. In Argentina you pay a lot and you don’t get what you pay for. There’s no good customer service. The western style “standards of service” doesn’t exist here. There are upscale places who think selling a bread from yesterday is normal.