Any ideas why the blue and MEP rates have dropped so much this month?

[SinPulgas]

En enero hubo más gente que vendió dólares de la que los compró

From La Nación. Archived version (No paywall).

 

[retiredbanker]

Just up update those here on certain food prices in Miami-Ft Lauderdale, here's an excerpt from the current weekly Publix ad.

 

[retiredbanker]

My Nampe wine inflation gauge remains practically unchanged as each 750ml bottle is still, when on sale, less than $2 US. Carrefour has a new stock of Nampe Malbec 2023 at 2500 pesos BUT buy 3 and only pay for 2. So each bottle about 1700 pesos. All is well.

 

[mikic007]

As I've stated before, I think a lot of folks on this forum are of the mindset that the state of equilibrium of the Argentine economy is that it is place that is naturally cheap in USD. That is only the case when draconian currency/ capital controls are in place that distort relative prices. When there are relatively little capital/currency controls in place (1990s, 2009-2012, 2016-2018 ) Argentina is quite expensive in USD versus its peers/ neighbors. We are entering a period where there will be no capital/ currency controls and the market will dictate what goods/ services will cost based on the real cost of doing business. For prices to be cheap in USD under these circumstances there needs to be major gains in productivity, efficiency of distribution of goods, and much, much lower tax burden.

Yes, Argentina was never cheap, if all was "normal". Plenty of people have a lot of money, middle class as well, and not much competition on the market, also it is remote place, everything must be imported exclusively to Argentina.

So people with money buy mediocre products by exorbitant prices, and poorer buy similar, much cheaper products. I see it all the time in supermarkets, people pay half of what I'm buying, just going for the lowest priced product.

At the same time, you can live (survive) very cheap in Argentina, despite high prices. Of course this standard is unacceptable for most of us, it is third world country grade.

 

[oddDistribution]

As I've stated before, I think a lot of folks on this forum are of the mindset that the state of equilibrium of the Argentine economy is that it is place that is naturally cheap in USD. That is only the case when draconian currency/ capital controls are in place that distort relative prices. When there are relatively little capital/currency controls in place (1990s, 2009-2012, 2016-2018 ) Argentina is quite expensive in USD versus its peers/ neighbors. We are entering a period where there will be no capital/ currency controls and the market will dictate what goods/ services will cost based on the real cost of doing business. For prices to be cheap in USD under these circumstances there needs to be major gains in productivity, efficiency of distribution of goods, and much, much lower tax burden.

How much more expensive do you think it will get?