What happens if Argentina gets too expensive? What are alternative cities/countries to move to when it's overpriced in Argentina?

Finance Prof · Mar 4, 2025

CraigM said:
Big Mac index 2024 | Statista

Switzerland leads the Big Mac index as of July 2024. The index is a way of measuring whether currencies are over- or undervalued against each other.

www.statista.com

Yes Argentina is only behind Switzerland now! The currency controls making the peso stronger and taxes make it more expensive. And I think the prices even jumped up since this last Big Mac index. I wonder when we will pass Switzerland?

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Bingo · Mar 4, 2025

Bingo said:
I just went to McDonald's today and it's more expensive than the United States! Crazy.

I did not know there was such a think as a Big Mac index. Interesting. So this is concrete proof that BA is overvalued I assume? This is strange. It is not just McDonalds. I got tired of the local food and was craving some fast food and all the places are expensive. Burger King, KFC and all the places are expensive! Starbucks is more than the US.

Forgive me because I didn't do much research before coming here. I just read some blogs from a few years ago that said it was cheap. Had no idea it jumped up so much. Some things are cheaper with is good. Utilities seem cheap. I visited an apartment yesterday and the owner showed me the bill and it was cheap but I don't know if I will use the AC or heat more? It seems like everything is going up in price now,

I have some medications that I take and it is more expensive here than home which surprised me. This is never the case when I travel in Latin America. In Mexico it is always much cheaper than home. I bought some vitamins the other day and it was 3X the cost of back home! 3X. Gas prices seem like they keep going up. Electronics here are nuts!

Some locals I met are all complaining the most about electricity and transportation costs that they say don't stop going up. That will drive the cost of everything else up.

How does this period compare to before when it was expensive?

Sylvia · Mar 4, 2025

Bingo said:
I did not know there was such a think as a Big Mac index. Interesting. So this is concrete proof that BA is overvalued I assume? This is strange. It is not just McDonalds. I got tired of the local food and was craving some fast food and all the places are expensive. Burger King, KFC and all the places are expensive! Starbucks is more than the US.

Forgive me because I didn't do much research before coming here. I just read some blogs from a few years ago that said it was cheap. Had no idea it jumped up so much. Some things are cheaper with is good. Utilities seem cheap. I visited an apartment yesterday and the owner showed me the bill and it was cheap but I don't know if I will use the AC or heat more? It seems like everything is going up in price now,

I have some medications that I take and it is more expensive here than home which surprised me. This is never the case when I travel in Latin America. In Mexico it is always much cheaper than home. I bought some vitamins the other day and it was 3X the cost of back home! 3X. Gas prices seem like they keep going up. Electronics here are nuts!

Some locals I met are all complaining the most about electricity and transportation costs that they say don't stop going up. That will drive the cost of everything else up.

How does this period compare to before when it was expensive?

I have been away from the board for a while but I correctly guessed that people would be complaining about the prices. Beef going up last month by so much was too much. These companies are abusing consumers.

I have been in Argentina for decades and during the 1:1 days during the 1990's and it wasn't as expensive as we are now in dollars. I have never seen it like this.

Opera Fan · Mar 4, 2025

Bingo said:
I did not know there was such a think as a Big Mac index. Interesting. So this is concrete proof that BA is overvalued I assume? This is strange. It is not just McDonalds. I got tired of the local food and was craving some fast food and all the places are expensive. Burger King, KFC and all the places are expensive! Starbucks is more than the US.

Forgive me because I didn't do much research before coming here. I just read some blogs from a few years ago that said it was cheap. Had no idea it jumped up so much. Some things are cheaper with is good. Utilities seem cheap. I visited an apartment yesterday and the owner showed me the bill and it was cheap but I don't know if I will use the AC or heat more? It seems like everything is going up in price now,

I have some medications that I take and it is more expensive here than home which surprised me. This is never the case when I travel in Latin America. In Mexico it is always much cheaper than home. I bought some vitamins the other day and it was 3X the cost of back home! 3X. Gas prices seem like they keep going up. Electronics here are nuts!

Some locals I met are all complaining the most about electricity and transportation costs that they say don't stop going up. That will drive the cost of everything else up.

How does this period compare to before when it was expensive?

You aren't alone. Many read old blogs that aren't too old or talk to their friends that visited Argentina not too long ago talking about it cheap. I have friends that are in the same boat and they are always shocked here.

Americans might not be as shocked as everything is expensive in America. But even they are surprised on many things. What I complain about is the quality of most things is terrible. Fresh fruits and produce in the store, towels and sheets and bedding, electronics. Don't get me started on the cost of clothing and shoes. Overpriced for what poor quality you get.

I know someone that moved here in 2023 when it was very cheap and they deeply regret it now. They lugged a few kids here when it was cheap and now tuition prices have more than doubled, healthcare prices skyrocketed and restaurant bills have gone up and even grocery bills while slowed down increases are still going up.

If you are on a budget @Bingo you better make sure you have enough. Inflation could go up late this year again however the blue dollar might be higher helping.

Rick · Mar 4, 2025

Opera Fan said:
You aren't alone. Many read old blogs that aren't too old or talk to their friends that visited Argentina not too long ago talking about it cheap. I have friends that are in the same boat and they are always shocked here.

Americans might not be as shocked as everything is expensive in America. But even they are surprised on many things. What I complain about is the quality of most things is terrible. Fresh fruits and produce in the store, towels and sheets and bedding, electronics. Don't get me started on the cost of clothing and shoes. Overpriced for what poor quality you get.

I know someone that moved here in 2023 when it was very cheap and they deeply regret it now. They lugged a few kids here when it was cheap and now tuition prices have more than doubled, healthcare prices skyrocketed and restaurant bills have gone up and even grocery bills while slowed down increases are still going up.

If you are on a budget @Bingo you better make sure you have enough. Inflation could go up late this year again however the blue dollar might be higher helping.

All true. Quality sucks here and locally produced stuff is terrible. Argentina is still much more affordable when you stack everything up including rent and utility bills. The biggest expense back home will probably be rental for where you will live and in Argentina you can find dirt cheap places. You don't have to be in Buenos Aires. Go outside and you can find really cheap places. Also everything is much more expensive in BA vs. other cities like Mendoza, Cordoba, and smaller towns.

Costs might have gone up 3 times but I would bet it's still cheaper than anywhere in the US right now when you factor in all costs.

Tim Joe · Mar 4, 2025

This inflation just isn't limited to Argentina. Many places the same thing has been happening over the years except in different categories. Not as sudden as Argentina but the cost of stuff everyone is more. This is the reason no one seems to want to have kids anymore. They can't afford them. I don't think Argentina will get cheap again. So the new reality is pay up or leave. That simple.

CraigM · Mar 4, 2025

Bingo said:
I did not know there was such a think as a Big Mac index. Interesting. So this is concrete proof that BA is overvalued I assume? This is strange. It is not just McDonalds. I got tired of the local food and was craving some fast food and all the places are expensive. Burger King, KFC and all the places are expensive! Starbucks is more than the US.

Forgive me because I didn't do much research before coming here. I just read some blogs from a few years ago that said it was cheap. Had no idea it jumped up so much. Some things are cheaper with is good. Utilities seem cheap. I visited an apartment yesterday and the owner showed me the bill and it was cheap but I don't know if I will use the AC or heat more? It seems like everything is going up in price now,

I have some medications that I take and it is more expensive here than home which surprised me. This is never the case when I travel in Latin America. In Mexico it is always much cheaper than home. I bought some vitamins the other day and it was 3X the cost of back home! 3X. Gas prices seem like they keep going up. Electronics here are nuts!

Some locals I met are all complaining the most about electricity and transportation costs that they say don't stop going up. That will drive the cost of everything else up.

How does this period compare to before when it was expensive?

The Economist created it many years ago as a simplistic way to compare cost-of-living across countries. The Big Mac is one of those rare products that is known and loved around the world and is made with the same ingredients. You could say the same about Coke but taxes on direct-to-consumer products make comparisons very difficult. I remember ages ago when a Coke at the store cost $1 yet in many parts of Europe it was about $4.

Giovanni · Mar 4, 2025

CraigM said:
The Economist created it many years ago as a simplistic way to compare cost-of-living across countries. The Big Mac is one of those rare products that is known and loved around the world and is made with the same ingredients. You could say the same about Coke but taxes on direct-to-consumer products make comparisons very difficult. I remember ages ago when a Coke at the store cost $1 yet in many parts of Europe it was about $4.

The margins on Coke are insane! I just watched this documentary on Warren Buffett and he was talking about coke. Staggering how many they sell each year.

Uncle Wong · Mar 5, 2025

I keep reading on various forums and online people moving to Spain. Is it really that affordable? Is it easy on the visas to stay there? I heard they have a digital nomad visa. I always think of Europe as expensive but with so many people moving there, especially from BA it can't be that bad. I would love to be able to travel around to other parts of Europe. There are so many discount airlines. I would like to have a place purchased and real estate there seems expensive. But maybe renting makes sense.

James Bond · Mar 5, 2025

Uncle Wong said:
I keep reading on various forums and online people moving to Spain. Is it really that affordable? Is it easy on the visas to stay there? I heard they have a digital nomad visa. I always think of Europe as expensive but with so many people moving there, especially from BA it can't be that bad. I would love to be able to travel around to other parts of Europe. There are so many discount airlines. I would like to have a place purchased and real estate there seems expensive. But maybe renting makes sense.

Spain is great. Rentals outside of Barcelona and Madrid are reasonable. People think you have to have a fortune to live in Europe but that is not the case. You can get a residency visa in France for less than $1,900 per month pension or steady income. Portugal is VERY easy to live in and get a visa. I have friends that only have less than $1,000 USD income per month and they got a D7 visa for Portugal.

Healthcare is very cheap or even free in some cases. Groceries and food are cheap and rentals can be had for not too much.

earlyretirement · Mar 6, 2025

CraigM said:
Big Mac index 2024 | Statista

Switzerland leads the Big Mac index as of July 2024. The index is a way of measuring whether currencies are over- or undervalued against each other.

www.statista.com

The "raw" version is even worse estimating that the Argentine peso is overvalued 56.7% vs. the peso.

Big Mac Index: Argentina 2nd most overvalued behind Switzerland

The Economist Magazine does a survey every 6 months comparing the price of the a Big Mac of countries around the world.

According to their calculations the Swiss franc is the most overvalued in the world with 38% overvaluation, giving them the most expensive Big Mac in the world. But followed behind is the Argentine peso which they calculate is 20.1% over valued.

The Big Mac Index (IBM) is based on the theory of "Purchasing Power Parity" developed in the 19th century by the Swedish economist Gustav Casel, according to which a currency is "aligned" with another if it allows you to buy the same basket of goods at the same value, expressed in either of the two currencies. The IBM, by taking a simple good, identical in any country in the world, allows the theory to be tested more simply, without resorting to price indices based on different consumption baskets.

Such is the most "raw" version of the index, of which The Economist also publishes a "gourmet" version, taking into account the level of GDP per inhabitant of each country. In the gourmet version, the Argentine peso becomes not the second, but directly the most overvalued currency in the world, with 56.7% overvaluation, leaving behind the overvaluation of the Swiss franc, which becomes 48.3% and that of the Uruguayan peso (42%).

Using the "raw" version Argentina's peso is overvalued 56.7% against the US dollar which matches many economists estimates.

Argentina is losing competitiveness with other countries. Tourism is dropping off tremendously as international tourists are going to other destinations and domestic tourism is flowing to other neighboring countries like Brazil.

Screenshot 2025-03-06 at 10.43.25 AM.jpg

Indice Big Mac: cómo calificó el peso argentino en el ranking global de monedas tras un año de dólar estable

Para la métrica que elabora la revista The Economist, solo el franco suizo está más sobrevaluado que el peso, que en la versión “gourmet” del índice pasa a ser la moneda más sobrevaluada, por sobre las de Uruguay y Suiza

www.infobae.com

Larry · Mar 6, 2025

CraigM said:
The Economist created it many years ago as a simplistic way to compare cost-of-living across countries. The Big Mac is one of those rare products that is known and loved around the world and is made with the same ingredients. You could say the same about Coke but taxes on direct-to-consumer products make comparisons very difficult. I remember ages ago when a Coke at the store cost $1 yet in many parts of Europe it was about $4.

But how do you explain @CraigM that a Big Mac can be more in Buenos Aires than anyone else in the world except Switzerland??? It is even more expensive than in your country!

earlyretirement said:
The "raw" version is even worse estimating that the Argentine peso is overvalued 56.7% vs. the peso.

Big Mac Index: Argentina 2nd most overvalued behind Switzerland

The Economist Magazine does a survey every 6 months comparing the price of the a Big Mac of countries around the world.

According to their calculations the Swiss franc is the most overvalued in the world with 38% overvaluation, giving them the most expensive Big Mac in the world. But followed behind is the Argentine peso which they calculate is 20.1% over valued.

The Big Mac Index (IBM) is based on the theory of "Purchasing Power Parity" developed in the 19th century by the Swedish economist Gustav Casel, according to which a currency is "aligned" with another if it allows you to buy the same basket of goods at the same value, expressed in either of the two currencies. The IBM, by taking a simple good, identical in any country in the world, allows the theory to be tested more simply, without resorting to price indices based on different consumption baskets.

Such is the most "raw" version of the index, of which The Economist also publishes a "gourmet" version, taking into account the level of GDP per inhabitant of each country. In the gourmet version, the Argentine peso becomes not the second, but directly the most overvalued currency in the world, with 56.7% overvaluation, leaving behind the overvaluation of the Swiss franc, which becomes 48.3% and that of the Uruguayan peso (42%).

Using the "raw" version Argentina's peso is overvalued 56.7% against the US dollar which matches many economists estimates.

Argentina is losing competitiveness with other countries. Tourism is dropping off tremendously as international tourists are going to other destinations and domestic tourism is flowing to other neighboring countries like Brazil.

View attachment 8828

Indice Big Mac: cómo calificó el peso argentino en el ranking global de monedas tras un año de dólar estable

Para la métrica que elabora la revista The Economist, solo el franco suizo está más sobrevaluado que el peso, que en la versión “gourmet” del índice pasa a ser la moneda más sobrevaluada, por sobre las de Uruguay y Suiza

www.infobae.com

At least some publications are being honest. This is very expensive! This say peso 56.7% overvalued. I think real number is higher than that. I think the blue dollar should be 2,500 to $1 US now! It is terrible. I thought Milei was supposed to be about free market and not manipulation.

James Bond · Mar 6, 2025

Larry said:
But how do you explain @CraigM that a Big Mac can be more in Buenos Aires than anyone else in the world except Switzerland??? It is even more expensive than in your country!

At least some publications are being honest. This is very expensive! This say peso 56.7% overvalued. I think real number is higher than that. I think the blue dollar should be 2,500 to $1 US now! It is terrible. I thought Milei was supposed to be about free market and not manipulation.

Unfortunately Milei moved away from many principles that he had before coming President. It is really Caputo that is running the show. Besides people that have money to invest in Argentina and that are getting richer, the poor aren't benefitting much. I guess salaries are higher but many of my friends tell me it is not matching inflation. They didn't make as much before but they claimed to have lived much better. Now they can't afford to go out to eat much. Struggling to pay bills.

I don't know what the blue dollar is truly valued now but it is definitely not what it is trading at. We will see where this goes.

Bingo · Mar 6, 2025

James Bond said:
Unfortunately Milei moved away from many principles that he had before coming President. It is really Caputo that is running the show. Besides people that have money to invest in Argentina and that are getting richer, the poor aren't benefitting much. I guess salaries are higher but many of my friends tell me it is not matching inflation. They didn't make as much before but they claimed to have lived much better. Now they can't afford to go out to eat much. Struggling to pay bills.

I don't know what the blue dollar is truly valued now but it is definitely not what it is trading at. We will see where this goes.

The price of fast food here in unreal! Not just McDonalds but all of them. All the fast food places like Subway, KFC and all the rest are more in BA than back in the US. Crazy.

Vero · Mar 6, 2025

Bingo said:
The price of fast food here in unreal! Not just McDonalds but all of them. All the fast food places like Subway, KFC and all the rest are more in BA than back in the US. Crazy.

Don't eat that junk. For the same price you can get a nice meal. I can't understand why people eat that expensive junk.

CraigM · Mar 6, 2025

Larry said:
But how do you explain @CraigM that a Big Mac can be more in Buenos Aires than anyone else in the world except Switzerland??? It is even more expensive than in your country!

I'm the last person on this board that could explain it Larry, it's just fun to look at the Big Mac index whenever someone says a currency is over or undervalued.

Charles111 · Mar 6, 2025

McDonald's pricing for a combo is actually quite ridiculous. Plenty of better options TBH.

Betsy Ross · Mar 6, 2025

Larry said:
But how do you explain @CraigM that a Big Mac can be more in Buenos Aires than anyone else in the world except Switzerland??? It is even more expensive than in your country!

At least some publications are being honest. This is very expensive! This say peso 56.7% overvalued. I think real number is higher than that. I think the blue dollar should be 2,500 to $1 US now! It is terrible. I thought Milei was supposed to be about free market and not manipulation.

I don't think anyone really knows what the blue dollar should trade at once the cepo ends. I have heard ranges all over the place. When I ask my friends that work in banks they all say it is overvalued. When I ask them for what they believe is they tell me from 1600 to 1800 pesos to $1 but I don't think anyone really knows.

Selfishly I would love to see the blue dollar higher but have no clue if that will happen or not.

Bingo said:
The price of fast food here in unreal! Not just McDonalds but all of them. All the fast food places like Subway, KFC and all the rest are more in BA than back in the US. Crazy.

I never eat that stuff and I am always amazed how full the typical McDonalds is. And the people going to them don't look like they have much money to spare. McDonald's has been popular here since I have been coming here. No matter how good or bad the economy is it seems like they have plenty of business. I wonder how the other chains do. I have never actually seen anyone in a Subway store. The one I walked by a few times never seems to have anyone in it. I don't know how they survive. I see them on Rappi but I can't imagine many buy them.

Charles111 said:
McDonald's pricing for a combo is actually quite ridiculous. Plenty of better options TBH.

My friends that come down here once in a while will crave McDonald's. I don't know why. I think some foreigners want something familiar from home. But my friends always comment how expensive it is here. People assume everything will be super cheap here and surprised at the cost now.

earlyretirement · Mar 6, 2025

Betsy Ross said:
I never eat that stuff and I am always amazed how full the typical McDonalds is. And the people going to them don't look like they have much money to spare. McDonald's has been popular here since I have been coming here. No matter how good or bad the economy is it seems like they have plenty of business. I wonder how the other chains do. I have never actually seen anyone in a Subway store. The one I walked by a few times never seems to have anyone in it. I don't know how they survive. I see them on Rappi but I can't imagine many buy them.

Yes McDonald's has been going strong there for decades. I still can't believe all the locals that buy it as it's very expensive for what you get. And it's also terrible for you. But they always are busy. Even right after the corralito it's the one place that I always noticed it was busy.

Subway I don't think they make much at all. I had a client that bought a few Subway franchises in Buenos Aires and Mendoza but I think they all went under. I have never been in a Subway store but I have ordered them on Rappi before. They are expensive. Here you can see a Chicken 12 inch footlong in Buenos Aires and it's 12,200 pesos ($10.20 USD at the blue rate).

And here is one from San Diego which is one of the most expensive markets in the USA, is $10.99 USD. Showing you just how expensive food is in Buenos Aires right now.

Larry · Mar 6, 2025

CraigM said:
I'm the last person on this board that could explain it Larry, it's just fun to look at the Big Mac index whenever someone says a currency is over or undervalued.

It's not fun to look at when you're paying those very dear prices. I just don't understand how people believe this is a normal situation?

Charles111 said:
McDonald's pricing for a combo is actually quite ridiculous. Plenty of better options TBH.

Yes! It is even more expensive than Europe or the States. Prices too high.

earlyretirement said:
Yes McDonald's has been going strong there for decades. I still can't believe all the locals that buy it as it's very expensive for what you get. And it's also terrible for you. But they always are busy. Even right after the corralito it's the one place that I always noticed it was busy.

Subway I don't think they make much at all. I had a client that bought a few Subway franchises in Buenos Aires and Mendoza but I think they all went under. I have never been in a Subway store but I have ordered them on Rappi before. They are expensive. Here you can see a Chicken 12 inch footlong in Buenos Aires and it's 12,200 pesos ($10.20 USD at the blue rate).

View attachment 8849

And here is one from San Diego which is one of the most expensive markets in the USA, is $10.99 USD. Showing you just how expensive food is in Buenos Aires right now.

View attachment 8850

This just goes to prove my point. Even in the most expensive spots in the United States the prices are almost the same and in some cases more. This does not make sense in a poor country like Argentina where people do not make much money.

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