Newcomer Why is Argentina experiencing a rise in costs?

[Ron]

Why do you think certain prices, such as those for food, are as high as they are in European countries? It's really crazy.

 

[Traveler]

Prices are catching up with inflation after being frozen by the previous government.

 

[jackL]

Argentina is grappling with severe inflation, with prices rising every month due to the decreasing value of the currency.
I have read that until January a family needed almost $600,000 not to be poor.

Una familia necesitó casi $600.000 en enero para no ser pobre

El costo de la Canasta Básica Total (CBT) trepó un 20,4% en enero. La CBT, además de comida, incluye otros rubros como indumentaria y transporte, y no tiene en cuenta el valor del alquiler de una vivienda.

www.ambito.com

 

[wonka]

Because relative prices are beginning to normalize in USD.
It's a pretty complicated topic that economists can explain better, but basically, prices in USD were artificially kept low due to an artificial official exchange rate, which drained the country's Central Bank reserves. Additionally, the national government pressured supermarkets and various companies to maintain low prices in exchange for allowing them to import at the official exchange rate.

When Milei's administration took over, they devalued the official exchange rate from $350 to $800, causing prices to skyrocket. They also removed price controls and are gradually lifting capital controls and regulations. The new exchange rate, economic reforms, and pro-market government have fostered more trust, reduced economic risk, and increased USD reserves in the Central Bank.

Thus, despite prices rising in pesos, the exchange rate remained stable, resulting in higher prices in USD, aligning with the real international prices of goods and services.
Salaries still haven't caught up, but it's expected that they'll begin to recover by the end of the year.

 

[jesicac]

Will Milei make Argentina great again?

Argentines are having a really hard time 😔

 

[drewst]

Argentina is currently experiencing a severe economic crisis, marked by exceptionally high inflation rates. Among the various sectors affected, food stands out as a critical one, given its consistent demand and vulnerability to unstable economic conditions.

For farmers, access to land is essential for obtaining loans, securing financing, and making investments in production. However, this crucial aspect of food production is also adversely impacted as the economy continues its downward spiral.

 

[chester]

In summary, the libertarian government compels people to surrender their dollars or leaves them in a situation without resources.

 

[tyler33]

The blue almost doesn't exists anymore. The official rate it's the double between last months..

 

[Betsy Ross]

Will Milei make Argentina great again?

Argentines are having a really hard time 😔

President Milei has been keeping his campaign promise to try to fix the mess that was made by previous administrations. We won't know if he is successful until at least a year or 2 from now. He is only 3 months in. Change will take time.

 

[MikeYoung]

President Milei has been keeping his campaign promise to try to fix the mess that was made by previous administrations. We won't know if he is successful until at least a year or 2 from now. He is only 3 months in. Change will take time.

Yes I also have been hearing of people saying that Milei hasn't done what he promised. He mentioned that he would be cutting government spending in his campaign. It sounds like many poor thought he would get elected and magically would fix everything. I am surprised that some of the poor voted for him. Those people benefit more from the Peronistas but sounds like they may have been confused at what Milei would have in store for them.

 

[Wally]

Yes I also have been hearing of people saying that Milei hasn't done what he promised. He mentioned that he would be cutting government spending in his campaign. It sounds like many poor thought he would get elected and magically would fix everything. I am surprised that some of the poor voted for him. Those people benefit more from the Peronistas but sounds like they may have been confused at what Milei would have in store for them.

Many of the poor that voted for Milei did not have a firm grasp of how they would be affected. You are correct for these people the Peronistas would benefit them more. But those days are gone for a few more years. Stay turned if they will get a chance to take back over. If Milei is not successful, Argentina will go back and probably never change again.

 

[StatusNomadicus]

I am surprised that some of the poor voted for him. Those people benefit more from the Peronistas but sounds like they may have been confused at what Milei would have in store for them.

you have no clue how much Communism harms the poor, if you really think that. please read any book from Thomas Sowell...you're very mistaken.

 

[MikeYoung]

you have no clue how much Communism harms the poor, if you really think that. please read any book from Thomas Sowell...you're very mistaken.

I admittedly do not know anything a bout Communism. But Argentina's government wasn't communist was it? I may be mistaken. I don't claim to know the details about their government. I will check out that book.

 

[Larry]

I have been saying for a long time prices here are expensive and will be more than the USA soon. Already restaurants are more than many places in Europe. Prices will keep going up.

Cuánto cuesta comprar los mismos productos en Argentina, EE.UU., España y Brasil

Desde diciembre, el tipo de cambio real multilateral que mide el Banco Central cayó un 18%, lo que muestra la apreciación reciente del peso

www.lanacion.com.ar