Argentina ( Highest inflation in the World)

[sergio]

The topic of inflation is one of the favorite themes on this board -- for good reason. It affects us so much. I agree with Perry. The cost of living is soaring and causng greater class divisions. Most people do not live like expats. Even expats on limited incomes are better off than a lot of Argentines who struggle from day to day to survive. Housing costs, monthly maintenance fees ('expensas'), health care etc. are all going up rapidly. How much longer before most items are as high or more than in the US or Europe? How long can this go on?

 

[syngirl]

What I don't understand is why food does not travel within the country. Chicken is half the price in Mendoza that it is in Baires because much is produced locally.

Argentina is the 8th largest country in the world, yet unlike other large countries it barely has a functional train system, therefore all food transportation is dependent on trucks -- and therefore on petrol -- and also on stupid Moyano and the CGT. Because of the combined high price of petrol and Moyano's union transporting food becomes very expensive -- this is why down in places like Comodoro Rivadavia salaries have to be much higher than Capital -- if they weren't, you wouldn't be able to afford to put food on the table. Almost everything down there gets trucked in, and boy do you see it in the price.

 

[sergio]

Argentina is the 8th largest country in the world, yet unlike other large countries it barely has a functional train system, therefore all food transportation is dependent on trucks -- and therefore on petrol -- and also on stupid Moyano and the CGT. Because of the combined high price of petrol and Moyano's union transporting food becomes very expensive -- this is why down in places like Comodoro Rivadavia salaries have to be much higher than Capital -- if they weren't, you wouldn't be able to afford to put food on the table. Almost everything down there gets trucked in, and boy do you see it in the price.

You are right: there is a limited and poor rail network.

The railways fell apart under Ferrocarriles Argentinos but after privatization numerous lines were abandoned leaving trucks- and now Moyano - in control. Nationalization would be the answer if the government were competent to do the job but I'm afraid it would be like the old Ferrocarriles Argentinos all over again.

 

[gouchobob]

I have my own thoughts but what do people believe is causing the inflation? How can or will it be brought under control?

 

[Amargo]

Nationalization would be the answer if the government were competent to do the job but I'm afraid it would be like the old Ferrocarriles Argentinos all over again.

Forget nationalisation! The last thing we need is more companies like Aerolíneas Argentinas. The way to go is to eliminate - gradualy- subvenciones. Truck transport cheaper than railway is a distortion caused by subvenciones.

 

[citygirl]

I rarely shop in supermarkets anymore b/c of the prices. I've gotten much more specialized with my shopping - go the the granja for meat (MUCH less expensive than at Jumbo/Coto/Disco/et al And better quality), buy my vegetables and eggs from stands on the road and am doing things like buying dried beans and making them as opposed to buying cans, etc.

I'm certainly not crying poverty but I do notice the inflation and have adjusted my lifestyle. It's not that I can't afford to spend the money but it seems ridiculous to spend that kind of money on basic food products. Things like a cooked chicken for 65 pesos makes me go ??? It's more than in NY (dollar to dollar). Same as with other things - Shopping for clothes/shoes/electronics/whatever is pretty much a no go due to terrible quality and the prices - I'm compiling my list for my US trip in July and I'll stock up on things there. Health insurance is now at 1200 pesos a month for a single person- which what I paid in the US. (yes, there are less expensive options but OSDE is what all my doctor friends recommended so I'm sticking with it).

 

[Jvanka]

I think that the inflation rate in my country is MUCHO higher !!

Fondly,
Robert Mugabe

what country?

 

[PhilipDT]

Seriously?

 

[jb5]

What/where is the granja?

 

[Napoleon]

What/where is the granja?

"Granja" is basically "farm raised".

So they are specialty stores that just sell chicken and chicken parts, plus occasionally milanesas de pollo/suprema de pollo.