Question On Inflation.

[weissbr]

I've previously spent two winters in BA. In 2007 it was
simply an incredible bargain. You got 3 pesos for
a dollar, prices were low, and we lived extraordinarily well.

We came back for the winter of 2010 and experienced the
rapid inflation. Pesos were 5-6 for a dollar but prices had
risen far more and it was an expensive trip.

Now, pesos are 8.5 for a dollar and prices seem to be rising
exponentially. As we consider returning for the winter this year,
I'm trying to get a sense of just how expensive life will be. I
know the blue rate is much higher though it seem to be
falling at the moment. But even that doesn't come close
to matching inflation.

My sense is that BA prices for foreigners are on a par
with London, Tokyo and New York.

As tourists our major expenses are apartment rental, food,
restaurants, local transit (read taxis), etc.

Am I correct in assuming BA is simply brutally expensive
for visitors at this point?

Thanks to all

 

[camberiu]

Am I correct in assuming BA is simply brutally expensive
for visitors at this point?

Thanks to all

If you go by the official rate, use a credit card and withdraw money at an ATM machine, yes.

 

[nkotb]

"Am I correct in assuming that BA is simply brutally expensive for visitors at this point?" No. In my experience (by no means vast) prices are about 50% of the US East Coast average, and far lower if your baseline is London or Tokyo.

 

[nikad]

if you come here with dollars or euros, you do not look at the official rate, you look at the blue rate and sell your money at that rate. It will be cheaper for you than 2010 but more expensive than 2007.

Note: bring cash, never use your foreign credit cards or debit cards to pay for anything. If you run out of money you go to Uruguay and withdraw usd.

 

[Crema Americana]

If you're exchanging at the official rate, then you're getting short changed by a lot. There's quite a spread between the official rate and the blue rate.

The inflation is for the most part in pesos. But, most tourists don't know about or don't want to head to a cueva which sounds sketchy... so they overpay (or rather, get robbed by the Argentine bank.) Then there's the whole issue of not being left with leftover pesos you can't do anything with. In 2010 you could exchange pesos to dollars with a passport - you can't do that anymore, at any bank. Your only option is a cueva. (They say if you have the receipt you can get dollars back, but I wouldn't trust it.)

So I wouldn't say necessarily more expensive.... but definitely more hassle for tourists looking for a deal (or to not get ripped off).

 

[Gringoboy]

How much is inflation nowadays anyway?
And I don't mean Indec, naturally.
40%?
I seem to have lost count in all this excitement.

 

[lucha54]

Inflation may be 40%, but what exactly has risen 40%? Apartment rates for tourists are the same if not slightly higher (depending on neighborhood). Cost of goods rises every year but different items rise different percentages so depends what you buy. Restaurants obv don't all raise 40% per year or they would have gone out of business. Or maybe they raise 10% this month, 10% a few months later... again depends on your timing and where you eat out. The blue dollar has risen about 100% so are things cheaper than say last November? Depends on what! How do you live... where do you go out... what do you buy... things like cell phone bills and concerts/ entertainments/ events are still incredibly cheap (many good events are free!) compared to other capital cities and also the price of luxury food items, I'm thinking these fancy organic markets that pop up every few weekends cannot even compare to the states where they might sell a jar of jam for $12USD.

 

[Gringoboy]

I use bananas as a useful guide.
Three years ago they were $3.50 a kilo. Today, the cheapest I can find are $21 a kilo.
In 2011 I used to be able to get my hair cut for $30. At the same place it now costs $140.
Again, three years ago, I could buy my tobacco at $6 for 40gms. It's now $35 and the list goes on for everybody, but the income doesn't keep track.
Granted, many may be taking advantage by hiking prices speculatively.

 

[Matiasba]

To the OP, prices maybe not are like 2007. Surely not. But you must also know that the dollar blue went up with inflation. So if you have dollars, it still is very cheap, a lot cheaper than London, Tokio and NY.

 

[scotttswan]

To the OP, prices maybe not are like 2007. Surely not. But you must also know that the dollar blue went up with inflation. So if you have dollars, it still is very cheap, a lot cheaper than London, Tokio and NY.

The dollar blue hasn't keep up with inflation though.

It will be slightly dearer than it was in 2007 but restaurants still tend to be cheaper than in the us/uk etc.