How much Argentine inflation really costs us.

[Caribbean Cool]

I needed to calculate how inflation affected my expenses over the 12 months ending May 2026. Here is how it works out. While Argentina’s 12-month consumer inflation through May 2026 was 33.2%, the official peso depreciated only about 21.8% over roughly the same period. That means Argentine prices rose about 11 percentage points faster than the official dollar during that year—important if you receive income in U.S. dollars. (Thanks ChatGPT)

 

[pixer12]

The math works out favorably for people paying in USD, no? Imagining a hypothetical basket of goods that cost 100k ARS at first and then 133.2k ARS later, expressed in USD terms with an FX rate that depreciated by 21.8% during the same period (starting arbitrarily at 1300 per USD though that doesn't matter) there's approx. 9% inflation in USD terms. Or am I misunderstanding?