Effects of eventual rise in colectivo fares

[chris]

I know that Macri has said that the "subte" fares will not rise for now however it is clear that they will go up soon. I believe $3,40 is the rate the city has suggested. Colectivo fares will also rise to similar levels. It's occurred to me that this should have a major inflationary effect on many things. Just about everyone rides buses in BA so its inevitable that we can see lots of people raising prices as a result.

 

[glasgowjohn]

I think 3,40 was the rate mentioned to break even , but I really doubt they will go anywhere near that figure.

There will be a rise in a month or two and then another a few months later.

My bet is we will will be looking at a fare of around 2 by the end of the year

 

[Ries]

Current one way trip on the Link Light Rail in Seattle-
$2.75/ 11.82 pesos

Current one way trip on Canada Line in Vancouver-
$3.75/ 16 pesos

Average Bart fare in San Francisco- $3.50/ 15 pesos

London Single Journey- 2.30 pounds/15.4 pesos

even at 2 pesos, the collectivos are still a hell of a deal.

 

[ben]

You are correct Ries, this however does not negate chris' point - namely, that the transportation costs borne by most residents of the city, and therefore built into this city's economy, are soon to nearly double, and this will have a ripple effect on prices.

 

[voyagingknoxvillian]

I have watched Cordoba's bus fare increase from $1.50 to $2.50 in the past year, and the only noticeable effect I have seen is a marked increase in the amount of MOTOS on the streets. Especially couples commuting via moto in the mornings. It makes more sense budget-wise to buy the moto with higher bus fares, I suppose. Students also petitioned, and have recieved low-cost fares.

I don't think bus fare has too much of an effect on the otherwise normal inflation rate, as the cost is born by the worker, and not the employer.

 

[Davidglen77]

Public transportation here is unsustainably cheap. For people who have been here 5 years or more and remember HOW CHEAP everything used to be, well percentagewise we are talking about big price jumps. I remember 1 peso empanadas, 10 peso pizzas (whole pie) and bread costing 2 pesos a kilo, fast forward to now and things have increased about 400%. However they are not THAT expensive, just catching up (slowly) to the rest of the world's prices. Let's be realistic, everything is globalized now and prices are following the same route.

 

[Lucas]

I know that Macri has said that the "subte" fares will not rise for now however it is clear that they will go up soon. I believe $3,40 is the rate the city has suggested. Colectivo fares will also rise to similar levels. It's occurred to me that this should have a major inflationary effect on many things. Just about everyone rides buses in BA so its inevitable that we can see lots of people raising prices as a result.

Well he did not wait for too long, didn't he?......Just now the BA government has announced that the subte fares will rise by 127% to $2,50 pesos from Friday....

Happy New Year from your friendly pal Mauricio Mad-cri to all BA commuters.

 

[glasgowjohn]

Looks like up to 2,50 on Friday

Didn't see that one coming......

 

[chris]

The fare will be $2.50 on Friday and I agree that it will probably rise again within months.

As for the comparison to the US or Europe, do I have to explain that few people in Argentina earn North American or European salaries? I can't understands why some expats don't get this. Please try to look at Argentina from the perspective of Argentines who do not receive income from outside the country.

My point is that the increase in a service used by almost everyone is going to cause more inflation. The maid, for example, who earns $20 pesos or less an hour will be impacted. Surely this is going to be passed on to everyone else in the form of more inflation.

Comparing fares to those of cities in the US or UK is irrelevant because it is comparing apples and oranges, however just for the record, the base fare in North American cities is seldom what locals pay. For example, in New York City the fare can be as low as $1.45 dollars (There are passes for unlimited rides). In Philadelphia, second largest city on the East Coast, the fare is $1.55 if you buy tokens. Again, there are passes for unlimited rides. Senior citizens travel free at all times (that's a lot cheaper than BA!). In London Oyster cards greatly reduce fares. I remember that buying a strip of tickets in Paris was cheaper than paying each time. There is also a major difference in the quality of transport -- all trains in the US, for example, are air conditioned, even the subway. Buses are always air conditioned, do not pollute as they do in BA as well. In the US virtually every family has at least one car. Public transit, outside of New York City, is not as universal a necessity as it is in BA - this fact makes the massive increase in transport fares a lot for the BA economy to absorb.

 

[chris]

Public transportation here is unsustainably cheap. For people who have been here 5 years or more and remember HOW CHEAP everything used to be, well percentagewise we are talking about big price jumps. I remember 1 peso empanadas, 10 peso pizzas (whole pie) and bread costing 2 pesos a kilo, fast forward to now and things have increased about 400%. However they are not THAT expensive, just catching up (slowly) to the rest of the world's prices. Let's be realistic, everything is globalized now and prices are following the same route.

When will SALARIES catch up?