Cost of Living

[Paulk]

Hi,

A lot of people have recently mentioned that inflation in BA is a growing problem. I'm just wondering whether, due to the global recession, if the cost of certain living expenses has gone down in BA?

Here in Europe renting is over 20% cheaper than it was last year. Supermarkets are also being forced to reduce their prices by as much as 1/3. Is it not the same case in BA? How can prices continue to rise if people can't afford them, and as being suggested here - that there are not as many expats.

I'm planning on moving to BA shortly and hope that aproximately 2,700 pesos/month will be enough to live an ok lifestyle. I know it won't be luxurious but enough to rent a room in shared accommodation and for food etc.

 

[Recoleta Carolina]

Hi,

A lot of people have recently mentioned that inflation in BA is a growing problem. I'm just wondering whether, due to the global recession, if the cost of certain living expenses has gone down in BA?

Here in Europe renting is over 20% cheaper than it was last year. Supermarkets are also being forced to reduce their prices by as much as 1/3. Is it not the same case in BA? How can prices continue to rise if people can't afford them, and as being suggested here - that there are not as many expats.

I'm planning on moving to BA shortly and hope that aproximately 2,700 pesos/month will be enough to live an ok lifestyle. I know it won't be luxurious but enough to rent a room in shared accommodation and for food etc.

Rents have come down quite a bit because the apartments are sitting empty due to fewer tourists coming to Buenos Aires. I think that many of the apartments for sale are for sale because people can´t rent them out and the expensas have gotten so high in some cases.

With 2,700 pesos a month you will be on a budget but if you rent a room in a house or share an apartment with a roomate it can be done. It also probably depends on what neighborhood you will choose to live in.

 

[erindanelle]

Hi Paulk,
you're going to get a varied lot of responses regarding that question...
In my opinion, 2700 pesos is enough to live on per month. But that is only if you live more like a local rather than an expat wanting to 'live like a king'. (even that statement is a sweeping generalisation)

I live with my boyfriend. We pay $1000 in rent plus $250 in expensas per month. We don't go out clubbing, but we do enjoy wine/beer in the house and we like to eat out. We eat in local restaurants where meals are reasonably cheap. We would spend on average $50 to $75 between us when eating out.
With bills on top of all of this, we certainly live month by month. Saving is not really possible.
The barrio which you live in may effect your costs also. I live in a nice suburb just outside of Capital Federal. Even the top restaurants in our area are probably cheaper than those mid range ones in wealthier Recoleta or Palermo.

I think business mentality here is somewhat different. Crisis is pushing prices up. Recently I furnished my apartment here, and a friend in Australia did also at the same time. She found great deals for whole lounge room sets and bedroom settings for what I considered to be great prices (for dollars). The shops were throwing extras at her just to secure the sale. Here, we weren't finding any 'great deals' for same level quality.
The mid range restaurants that we frequent in our barrio have all increased their prices. Not hugely, but $2-$3 pesos per dish. Enough to notice.

ps - all prices mentioned are in pesos.

 

[RichG]

This is an interesting link.....it tells us what we all know..it isn't that cheap to leave here anymore.

It is in Spanish but you can always get Google to translate.

http://www.clarin.com/diario/2009/07/08/um/m-01954606.htm

 

[rmartinbuenosaires]

The cost of living increases cannot be compared using basic logic, to the U.S. and Europe. With unions, backed by the government, demanding and receiving salary increases in excess of 30-40% (unheard of in stable countries), the government subsidization of local gas and electric (and NOW consequential rate rises, in some cases in excess of 500-600%) and local corruption all fuel the fire. NOTHING ever decreases in price here. You will only get higher prices with less selection, poor service and smaller portions (if a restaurant, for example). Does anyone know of prices for anything decreasing here? I also have read recently that prices are going to go up even more since the election is now over.

Food in supermarkets and restaurants in many cases is much cheaper in Spain than here....and often with better quality and selection there. A report the other day indicated that the price for cheese is higher here than in France. Go figure.

 

[perry]

The cost of living increases cannot be compared using basic logic, to the U.S. and Europe. With unions, backed by the government, demanding and receiving salary increases in excess of 30-40% (unheard of in stable countries), the government subsidization of local gas and electric (and NOW consequential rate rises, in some cases in excess of 500-600%) and local corruption all fuel the fire. NOTHING ever decreases in price here. You will only get higher prices with less selection, poor service and smaller portions (if a restaurant, for example). Does anyone know of prices for anything decreasing here? I also have read recently that prices are going to go up even more since the election is now over.

Food in supermarkets and restaurants in many cases is much cheaper in Spain than here....and often with better quality and selection there. A report the other day indicated that the price for cheese is higher here than in France. Go figure.

Fully agree with you on this and I believe that the quality for price in Buenos Aires has decreased of late. The most expensive items here are antiques, furniture, old cars , new cars etc etc etc.

I had a European friend of mine visit San Telmo and he was outraged by the prices and said that they were up to 3 times dearer than Europe. Sure there are cheaper places to buy antiques in Argentina but still they can be dearer than your home country.

Used cars are ridicuously overpriced as well . The classic one I saw recently on the street of Palermo was a rustheap VW Combivan advertised for 10000 Argentine Pesos. The same car in my country would sell for at most 1000 dollars.

 

[Paulk]

Thanks for the replies!

I hope to live in a shared apartment in San Telmo. From looking on craigslist, it should be possible to get a room for $1,000/month.

 

[BlahBlah]

That leaves you with about 50 peso a day if you don't have any cost in your home country, without insurance and your ticket paid before

It can be done offcourse, but you should get used to eat a lot at home, go out only 1 or at most 2 times a week and find many cheap hobbies.

Are you planning on working as well?

 

[Paulk]

I plan on teaching English for a few hours/week.

Initially I was going to teach full-time but from reading many posts here, it appears to be more hassle than it's worth, and doesn't pay particularly well.

So a few hours of teaching privately would supplement my $2,700 pesos nicely.

Suerte.

 

[jp]

Incomes roughly track inflation (roughly) so its less a case of prices going dow - its more prices staying stable or not rising as fast as inflation. Which basically amounts to a decrease. In more stable economies with 2-3% inflation you might notice prices decreasing, but with inflation here running somewhere around 20% nothing really gets cheaper.

That said, there are price controls on lots of things, like meat. So food remains cheapish providing you go for the things that are price controlled. Rents aren't going up in line with inflation in a lot of areas, because there isn't the demand and flats are sitting empty with rising building fees to pay. So there are deals to be had, but if you are going to flatshare thats probably not so relevant.

2700 isn't masses but you should be comfortable enough so long as you budget accordingly. You can still eat out, go out to drink etc but you'll have to choose your places. There's plenty of teaching work about, it doesn't pay huge amounts but it should supplement that money and give you a enough to splurge on nice things occassionally.

As prices go, there's permanent complaints that X, Y & Z are cheaper elsewhere, but in fairness you can find things here that are good quality and cost very little that cost a fortune in europe. You just have to choose things which represent good value. You can eat well, drink well and have a good social life for a fraction of the cost in europe.

Suerte! Sure you'll love it