How do you cope with inflation?

[Gringoboy]

Yes, personal reasons are the compelling factors here for whether you stay or go. (breaks into The clash)
We have more or less decided to end up back in the UK, but my wife is Argentine and she has a young son who is not yet of age.
So we'll struggle on with all the problems of living in Argentina until the right conditions present themselves.
Having said all that, I can think of much worse places to to live.
BsAs has many redeeming features.

 

[mariano-BCN]

The actual situation in Argentina reminds me of the nineties when Argentina was one of the most expensive countries in the world and every time I asked my fellow Argentineans if they realize it was crazy for an under-developing country with bad service and goods to have New York-prices they just didn't care. Then the crisis of 2001/2 exploited and Argentina became very cheap. Now it's on it's way to become once again one of the most expensive country in Latin America.
This volatile fluctuation of Argentina is for the reason why an investment in buying a flat is out of question.

 

[Aleina Dee]

I hope things are not going to get that bad again. Back in April things were getting more expensive. The cheese I used to buy went from 7 to 9 pesos overnight. And yes locals are finding it really difficult to make ends meet. Pizza of the cheapest kind went from 18 to 22 pesos. Seems little increases but when you view them across teh board they make a difference. I know of Argentine who have had to cut back the number of meals a day.

It is worth noting though that commodity prices are being jacked up around tthe world, presumably by speculators money fleeing into safe havens

 

[sergio]

The actual situation in Argentina reminds me of the nineties when Argentina was one of the most expensive countries in the world and every time I asked my fellow Argentineans if they realize it was crazy for an under-developing country with bad service and goods to have New York-prices they just didn't care. Then the crisis of 2001/2 exploited and Argentina became very cheap. Now it's on it's way to become once again one of the most expensive country in Latin America.
This volatile fluctuation of Argentina is for the reason why an investment in buying a flat is out of question.

In was in Argentina then. There is no comparison. We were paid in pesos that were equivalent to dollars. Property was a fraction of its current value and there was credit available. The ratio between income and prices was reasonable. Middle class people were traveling to the US and Europe all the time.

 

[darmanad]

The rate I am paying, something like USD $275, is for myself only. There is a list of doctors/clinics I can go to. Some of the best are included. I had a better plan but it got too expensive a couple of years ago and I downgraded. My insurer has several far more expensive plans. One more time let me point out that if you want health insurance that comes close to good quality care in the US you have to pay much more than the can driver is paying... I doubt that your taxi driver has insurance that includes the best clinics. ALL medical care in Argentina is NOT the same.

If you are 67, why are you paying $550 for US health insurance when you are covered by Medicare? Supplemental insurance for the 20% not covered is far less expensive. My mother has a plan for around $100. Does your insurance cover you in Argentina?

1. Are you 53?
2. Is your insurer an AR entity? If so, are you paying more than a AR national would pay for the same coverage?
3. Do you have partial self-retention (deductible) each time you visit a provider?
4. Do you have an aggregate self-retention?
5. Medicaid doesn't pay for med expense incurred outside the US for non-US residents.
6. In California in 2003, I paid $275/mo as my share of a coverage plan that was also partially funded by my ex-employer as a retirement benefit. The total cost per month was over $450 (when I was 60). I had to pay $20 every time I saw a provider and a certain small % of hospital bills.
I can only guess what the cost of that same plan would be today. I would conservatively guess $1000/mo. Probably more taking my age into consideration.
7. I shopped for coverage in Rio in 2003 when I purchased my current policy. Back then the cost was more than $1000 per mo.
8. Where can I sign up for that $275/mo program you have?

 

[mini]

When I was in Italy a couple of years ago I found prices quite reasonable for food. Those little espressos, fantastic coffee, were cheaper than the miserable coffee they serve in BA. Pizzas were absolutely fantastic and I don't recall their being expensive. Quite a few things were cheaper in Italian supermarkets THEN. Now that BA is so expensive the contrast is greater. In Italy you get QUALITY food in restaurants and markets, almost always. The subway was 1 euro. Intercity trains may have been more expensive (not sure now) and they were very good. This forum seems to have people who fall into three categories: 1) They defend Argentina no matter what. 2) They are tired of Argentina and are fed up with the prices and the problems. 3) a Few extremists who hate everything in Argentina but hang on apparently for personal reasons.

Two of my biggest complaints are:
The lack of quality which would be fine if the prices were lower & they just keep going up & the quality does not improve. So like I said earlier, it's really starting to feel like I'm being cheated.

The other issue is that salaries are so much lower that these poor quality goods actually cost more in % of our salary.

I don't hate it here. In fact I quite like it. But these things are starting to get annoying to the it's not fun anymore. It's a shame really.

Oh, here's another example from 15 minutes ago: National coffee was selling for AR$75-120/kilo where imported Italian coffee was selling for AR$57/kilo. WHY?

I don't find the price of pizza in Italy versus Argentina very compelling or meaningful. All you need to know is that inflation is very high and will probably only get worse over the next year. Each person has to plan for this and make their own decisions. My guess is that a many people are going to the airport and home as the situation deteriorates.

I find it interesting. But you are right. The above is enough. We are still leaving on schedule. I mean, we are not going to leave earlier than planned. But it will leave a bitter taste and that's making me sad already.

 

[Celia]

One good thing about all this inflation (!) is I've learned to make my own pizza base which I never would've otherwise done as I'd tried once and failed. The last one actually made the place smell like Pizza Express and tasted pretty good too...

 

[allcraz]

One good thing about all this inflation (!) is I've learned to make my own pizza base which I never would've otherwise done as I'd tried once and failed. The last one actually made the place smell like Pizza Express and tasted pretty good too...

Celia, same here! After the last year or 2 of cringing when given the final price on the line with whatever pizza delivery joint and complaining about it even more so after a terribly unworthy pizza arrives at my door, I vowed never to order again if I have anything to do with it. So it's pizza flour in the pantry for me. Or if you find a place selling good prepizza dough, that's a deal as well.

 

[marksoc]

About the 90s, the poster forgot to add that there was 25% unemployment in 2000 and up to 60% unemployment in the poor neighborhoods. This is not the case anymore. There will be high inflation for sure, but demand in Argentina is now strong, there is not too much unemployment, and the reserves are gigantic compared with what they used to be.

Yes, Argentina will be a expensive country compared with 2002, and maybe will reach the situation in the 90s, but salaries are increasing, in many cases more than the real inflation rate (it was my case).

 

[azerty]

For those who are interested in the real inflation rate :

http://www.inflacionverdadera.com/