Argentina inflation spikes to 92% as economic growth picks up

[Rich One]

For those here living on US dollars, inflation here mostly isn't an important issue although I'm not sure how someone with access to only pesos survives.

Those of us living on US dollars have lost at least 30 % buying power due to inflation. The dollar went up 65 % this year and inflation is /will be 95% plus.
If you had placed your estimated year dollar year expenses by Jan. 1st. in peso UVA CD deposits you would have come ahead 30%?

 

[Traveler]

Those of us living on US dollars have lost at least 30 % buying power due to inflation. The dollar went up 65 % this year and inflation is /will be 95% plus.
If you had placed your estimated year dollar year expenses by Jan. 1st. in peso UVA CD deposits you would have come ahead 30%?

Even with terribly high inflation here in Argentina, the cost of living is still considerably less than living in the US. Prices for food there make it look almost free here. I select from 4 or 5 wines here that are about +/- 650 pesos. That's about $2 US dollars. You can't find a wine in the US for that, not even Tiger Rose or White Lightning. I complain when one wine I buy (Nampe at a local Chinese) went from 250 pesos to now 460 pesos in the past year; $1.50 US for a bottle. Imagine the stomach pump you'd need for that!

 

[Jtee125]

I wonder what effect the recent implementation of close to blue rate on foreign credit cards will have on inflation and the wider Argentinian economy. Would it be naive to presume that greater official access to dollars will be a good thing for the Argentinian economy/inflation or is it a marginal factor?

 

[Jtee125]

Even with terribly high inflation here in Argentina, the cost of living is still considerably less than living in the US. Prices for food there make it look almost free here. I select from 4 or 5 wines here that are about +/- 650 pesos. That's about $2 US dollars. You can't find a wine in the US for that, not even Tiger Rose or White Lightning. I complain when one wine I buy (Nampe at a local Chinese) went from 250 pesos to now 460 pesos in the past year; $1.50 US for a bottle. Imagine the stomach pump you'd need for that!

Likewise from the U.K. perspective, the most expensive bottle of wine in a restaurant in Argentina is usually cheaper than the cheapest wine in a restaurant in the U.K.

 

[Rich One]

Even with terribly high inflation here in Argentina, the cost of living is still considerably less than living in the US. Prices for food there make it look almost free here. I select from 4 or 5 wines here that are about +/- 650 pesos. That's about $2 US dollars. You can't find a wine in the US for that, not even Tiger Rose or White Lightning. I complain when one wine I buy (Nampe at a local Chinese) went from 250 pesos to now 460 pesos in the past year; $1.50 US for a bottle. Imagine the stomach pump you'd need for that!

Traveler, I agree 100 % with you only on the Nampe wine price increase (my favorite ).
I can't comment on price comparisons with the US, UK or other major Countries, obtaining satisfaction from it is futile ....
Some live here permanently, and have a budget they must keep, bear in mind that some expats living on SS would be way below poverty line in the US.

PD: The family poverty threshold is $33,148.Sep 22, 2022 ?

 

[Traveler]

Traveler, I agree 100 % with you only on the Nampe wine price increase (my favorite ).
I can't comment on price comparisons with the US, UK or other major Countries, obtaining satisfaction from it is futile ....
Some live here permanently, and have a budget they must keep, bear in mind that some expats living on SS would be way below poverty line in the US.

PD: The family poverty threshold is $33,148.Sep 22, 2022 ?

I completely agree that some living here from the US are on budgets as they no doubt have fixed expenses that others don't. However, if they're on SS, the average is about US$1600 a month and that's about 500,000 pesos. I know were I back in the states, there's be a lot fewer steaks in my refrigerator and much less wine.

 

[Quilombo]

Out of curiosity I've been keeping track of the prices of the BCRA/Blue/CCL on (or around) the 15th of each month and using it to compare against inflation to see what the true value of the dollar should be if it kept up with inflation.

As you can see, things aren't great even in dollar terms, January 15th to December 15th the CCL (WU more or less) has increased 61.45% when inflation is creeping towards 100%. However, as others have pointed out, those of us who earn in dollars, or our wages are indexed to them are still doing better than most people here who are simply drowning.

As many of us have expressed previously, the dollar "feels" like it should be closer to $400 or $500 and this is why.

 

[Rich One]

I completely agree that some living here from the US are on budgets as they no doubt have fixed expenses that others don't. However, if they're on SS, the average is about US$1600 a month and that's about 500,000 pesos. I know were I back in the states, there's be a lot fewer steaks in my refrigerator and much less wine.

Very true as you mentioned average implies that half live on much less than 500,000 pesos, bear in mind that the ones on US$1000 budget are barely above the minimum required for a family to live in CABA. If a family pays rent and lives on $300,000 is a tight budget...!

 

[Traveler]

Very true as you mentioned average implies that half live on much less than 500,000 pesos, bear in mind that the ones on US$1000 budget are barely above the minimum required for a family to live in CABA. If a family pays rent and lives on $300,000 is a tight budget...!

As you implied, those living here on only $1,000 a month must be suffering.

 

[Rich One]

As you implied, those living here on only $1,000 a month must be suffering.

If renting a 2 ambientes rental, utilities , Cable and Expensas will take care of 50% of the $300,000 peso net income . Add food, cleaning products, Disposable income? not much..! Living high on the hog? Option go back home and rent a tent?