When was the last time Argentina was expensive?

[antipodean]

So it appears that it was on par with the average "smaller big city" in the US or Europe. Any indication that the value of the peso will return? If it did, a lot of people would all of a sudden have good money in the bank. I feel like I should keep around a million pesos in the bank that I don't spend just in case the tide turns one day.

Pesos in a caja de ahorro... 50% inflation + devaluation. The value of the peso will return how exactly?

The only risk to your current dollar backed buying power is that the gap between official and blue suddenly reduces significantly and the only way that happens is if the official is devalued significantly. The only way that a major devaluation happens is if the government decide to let the peso go to market (as it did previously) or they simply run out money to keep artificially holding the official where it is (as has also happened previously.)

What could that look like for you in USD terms? Simple. Divide all current prices by 107 and add on a 5-10% for good measure ... that US$8 sushi meal suddenly doesn’t sound so cheap at US$17. In any case, rest assured that the new value in ARS terms would not be 107 - it would be 210+++++, meaning that ARS1M in the caja de ahorro ain’t gonna go any further.

In this situation Argentines who earn in ARS “win”, (after first loosing their savings and a few brutal months of wages not keeping up with living costs causing protests, strikes and wage negotiations until some kind of parataria / adjustment is achieved, again pushing prices higher in real terms....) Gringos who earn in USD and live off the brecha “loose”.

 

[Dougie]

The US Fed is raising rates this year 1 to 3 times. The IMF already put out a warning to emerging markets, get ready for pain.

The peso isn't coming back against the dollar, despite what some on the board predicted would happen if Joe Biden was elected president.

 

[SecretShopper]

I guess if something like that happens I would actually spend less money. I am the type of person who loves value. I spend more money in places like Argentina and Colombia than I do in places like London and Paris. For example, I was in London about 7 months and aside from high rent, I really didn't spend that much. I only ate in good restaurants 2-3 times per week.. I didn't see the value. Grocery stores are not at all expensive there. Public transport is about 8 pounds a day.. that's a decent cost. On an average day, excluding rent, I probably only spent like 30 bucks. On a day where I ate out at a good restaurant... 90 bucks. A night out in London I'd probably spend 75 bucks, which is 5 doubles in an average bar in a good area. But there are also a lot of cheap bars in London where you can get drinks for a few pounds.

Compare that with BA where I never cook and overdo everything. Average day in BA I spend more than average day in London.

 

[Rich One]

. It was in 2016 when Argentina was the most expensive country in LATAM. As described by El Pais..!

¿Por qué Argentina es el país más caro de América Latina?

Un comparativo de precios con Brasil, Colombia y México muestra las consecuencias de una inflación desbocada en pesos y un dólar bajo.

elpais.com

" Practically everything is expensive in Buenos Aires. But prices are skyrocketing for consumer goods such as clothing, cars or technology. Direct consequences of runaway inflation, a peso that is revaluing, and a country with trade borders almost closed abroad. In Buenos Aires there is no Apple or Ikea store or almost any of the usual ones in the big cities of the world, the entry of imported cars is highly controlled and many of the big cheap clothing brands found throughout Latin America have not been able to enter. . This benefits the local industry, almost without competition, helps employment and guarantees huge benefits to Argentine businessmen, but it also drives up prices. The immediate consequence is that the middle and lower class buy everything in eternal installments, with consumption plans subsidized by the Government, while the upper-middle class takes advantage of their trips abroad to buy cheaper."

The value of the Blue during 2016 was close to the Official rate

Variation in the price of the blue dollar in 2016:
In the informal market, the North American currency had an annual increase of 19.60%, opened 2016 at $ 14.13 for sale on January 4 and ended up selling at $ 16.90 on December 30.
While the Official dollar ended 2016 at $ 13,80 a 21,7 % increase

 

[Quilombo]

I remember things being expensive in the early 2010s when I first came here doing a contract job. I found my rental contract, and a 2 bedroom apt (nothing special, very average) I shared with a friend was $3,600 ARS/month, or $381.76 USD/month at the time. That's $77,879 ARS/month now, and needless to say, you can find a very nice apt for that.

Also, if I remember correctly, things such as a drink at a kiosko were ~10 pesos/$1.05, and I think it's fair to assume none of us would pay $215 pesos for a 500ml of coca zero today. I feel like some of our older friends on here now: "Back in my day, a bottle of coke was ten pesos!"

 

[SecretShopper]

I remember things being expensive in the early 2010s when I first came here doing a contract job. I found my rental contract, and a 2 bedroom apt (nothing special, very average) I shared with a friend was $3,600 ARS/month, or $381.76 USD/month at the time. That's $77,879 ARS/month now, and needless to say, you can find a very nice apt for that.

Also, if I remember correctly, things such as a drink at a kiosko were ~10 pesos/$1.05, and I think it's fair to assume none of us would pay $215 pesos for a 500ml of coca zero today. I feel like some of our older friends on here now: "Back in my day, a bottle of coke was ten pesos!"

If you don't mind me asking... where do you live where you can find a really nice apartment for 400 a month? Definitivamente not in the better areas of buenos aires.

 

[Quilombo]

If you don't mind me asking... where do you live where you can find a really nice apartment for 400 a month? Definitivamente not in the better areas of buenos aires.

I live downtown, and am looking basically between Callao and the Ecological Reserve, and Libertador and 25 de Mayo. For an example, I saw this apartment last week, and sadly someone else snagged it before I had the chance. $395/month for a 2 bed, 2 bath (1 of them a master w/walk-in closet) and a 828 sqft apartment over all in a well maintained building is pretty nice to me.

I've lived downtown for over a year now, and perhaps it's survivorship bias, but I've never had any issues (you can see rats at night on the street, but same thing happens in the nicest parts of Manhattan too) and neither has my husband; people who haven't lived here seem to think it's not a nice part of town, but personally I like the architecture, being close to all the banks and offices and businesses, and my only real complaint the protests that cut access in to downtown sometimes, but I work from home, so it doesn't really impact me.

 

[SecretShopper]

I'm paying close to 1600 for a furnished 1 bedroom in puerto madero. I'm going to try a 6 month lease maaaaybe... if I can get something directly with the owner.

 

[Kula]

It was actually expensive till ( I actually remember this moment exactly, ha) August 2019. This was when everybody got that Fernandez win