An Inflation Moment

[dillster]

Well, inflation and prices has been addressed before. Those of us who have been here a few years deal with sticker shock each and every day. Listerine 27 pesos!

I thought Id share this little story from today. I stopped going to Mar del Plata in late 2007. I was going about 3xs a year and staying off season in a nice hotel for 25 pesos (tv, breakfast, private bath). Ive traveled around the country and paid about 17 pesos or so for most dorm beds in hostels.

Well I just checked several hostels at the beach. With 8 beds in the room, the hostels are 60 and 65 pesos. One was a little cheaper but looked awful.

Can you imagine paying 17 dollars for a hostel bed in Europe, etc., then just after a few years it costs 60 dollars? Well, to those who live here that is just what it is like.

Bloomberg news predicts another year of galloping inflation. The govt. denies it. Soon we will be paying even more. I see 20 peso empanadas right around the corner.

I wanted to go to the beach just for a few days, but 200 pesos for 3 nights plus the expensive bus etc. etc. Wish I had an ARg. public official in my family, we would be multi millionaires as we got kickbacks on everything under the sun.

 

[PhilipDT]

Inflation is insane here and the exchange rate isn't keeping up either.

 

[nikad]

Whilst the government says inflation is around 10% a year, private consultants say it is around 30%. The expected ( official ) exchange rate that was budgeted for the coming year is 4.20$ per dollar, so make your numbers

 

[dennisr]

Between the devaluation of the peso and inflation, you have lost about 45% of your purchasing power in the past year. The whole economy is a joke.

 

[French jurist]

I do agree but why be whining about it ? We all knew coming here that such things happen here.
I arrived here in 2003 when it still was damn cheap, and in the near future, you can bet the peso will be devaluated again, and we will be back to a situation -for us- quite enjoyable !

French say : "quand les plafonds sont bas, il faut savoir baisser la tête" (when ceilings are low, one must learn to keep head low).

There are too a few ways to adapt yourself to inflation, not regarding housing or vacations I agree, but regarding food for example : just one example (I live in BA Norte), I find a pack of rucula at Jumbo in Pilar for nearly 10 pesos, I buy the same rucula, even fresher, for 1 peso from a small bolivian verduleria in a non-fancy village.

I'd say it's a good motive for you to visit other places than MDP.

Just my 2cts

 

[mmoon]

I agree with French jurist...I've been living off and on in Argentina since immediately after the Big Presidential Turnover in December 2001/January 2002, and I know I've reaped many benefits of the devalued peso. Yes, it's shocking how expensive things have become in just a few years. But, everyone I know here says that it will happen again (although hopefully not nearly as devastating as before) and this country will be a semi-bargain again for foreigners. If you get off the beaten track, there are still amazing deals out there. I'm surprised at how many cheap and delicious midday menus there still are (for example). Two full courses and a drink for around $8 US is incredible and not uncommon. I hardly go out for dinner anymore, because I just feel like I'm getting ripped off at night for the same food that is a steal at lunch!

 

[LAtoBA]

Guys and Gals, while inflation is a problem here, Argentina is still a very, very cheap place to live. Please take a trip up north to Sao Paulo, Rio de Janeiro, or even Florianopolis for a bit of reality.

I highly suggest it, because after making the trip you learn to appreciate your purchasing power and the "cheapness" of Argentina. Argentina is still a really good bargain for foreigners.

 

[Gringoboy]

But not such a bargain when you earn in Pesos and your income doesn't catch up with inflation.
We are finding it extremely difficult as many expenses have simply doubled in the last 18 months.

 

[LAtoBA]

But not such a bargain when you earn in Pesos and your income doesn't catch up with inflation.
We are finding it extremely difficult as many expenses have simply doubled in the last 18 months.

Not to sound harsh, but I think then it's time to find another line of work, figure out how to make things work, or move on. We are after all foreigners who have the privilege to return to "home base" when things get rough.

Many foreigners were able to take advantage of low prices and low cost of living in the aftermath of Argentina's economic meltdown in the early 2000s. It seems that tide is changing. I just think the real victims here are Argentines themselves, not expats.

 

[dillster]

I am a foreigner who earns pesos like the rest of the population. Those of you who have dollars streaming in are indeed in an enviable position. Its hard to describe the many daily hassles of living here. I havent left the country for 3 years, cant afford to. I think living here "on and off" gives you a different look on things. I wait in line for coins, I try not to break an ankle on the minefield of broken sidewalks, I deal with the soaring inflation and the streets choked in black fumes. I dont expect any of these things to change. If you earned euros and the price of a hostel was 17 euros then the next time you planned a trip it was 60 and you hardly earn anything more, youd be perturbed. Yes, the metaphor is a good one, Argentina is a country with a low ceiling, so bend down and crawl.