Economy Will clothing and footwear prices finally drop?

[Ron]

Good news (or at least it seems like it)! Starting with a Decree to be published in the coming days in the Official Gazette, tariffs on clothing and footwear will drop from 35% to 20%. There will also be reductions on fabrics and yarns. The question is: will this actually reflect in the final prices for consumers? 🙄 This could be the change Argentinians have been waiting for...With how expensive clothes and shoes are here, let’s hope this measure gives us a break. What do you think? Will this be the change Argentinians have been waiting for?

Alerta en la industria textil: cuál es la advertencia de los empresarios tras la baja de aranceles a la importación

El decreto mediante el cual reducirán fuertemente los aranceles saldría en unas dos semanas. Todas las cámaras y sindicatos del sector preparan un comunicado conjunto

www.infobae.com

 

[Hero]

I don't believe it; the clothes here are unaffordable, and in fact, the clothing sector is the most expensive. But you'll see that even something as simple as having a coffee or buying chocolate is cheaper in Europe.

 

[James Bond]

The clothes there are terribly priced! I would buy a pair of jeans or a shirt and it is literally 3x the cost of here in Spain. Crazy. Prices in BA are out of whack.

 

[Uncle Wong]

The clothes there are terribly priced! I would buy a pair of jeans or a shirt and it is literally 3x the cost of here in Spain. Crazy. Prices in BA are out of whack.

I watched some videos on Tik Tok of girls going into a Zara store in BA. I think Zara is from Spain and they were floored by a shirt that would cost like 15 Euros in Madrid about $65 dollars in BA. Who buys that stuff? Are locals really buying this? What about food items or chocolate like in that video?

I still don't understand how locals can pay 4,000 pesos for a coffee? Something is out of whack on that pricing and salaries.

 

[Melibaires]

I think locals do buy these things, but often on installments with credit cards, which is very common due to inflation. Many people also wait for discounts or travel abroad to shop for clothes.
As for food, it’s the same story. A basic chocolate bar that costs $2 in the U.S. or Europe might be $10 here. A coffee for 4,000 pesos (around $4 or more) is expensive when you consider that many salaries don’t keep up with inflation. That’s why a lot of people either cut back on certain luxuries or adjust their spending habits. It’s definitely a weird economic reality where some things feel absurdly overpriced.

 

[Blockchain]

I think locals do buy these things, but often on installments with credit cards, which is very common due to inflation. Many people also wait for discounts or travel abroad to shop for clothes.
As for food, it’s the same story. A basic chocolate bar that costs $2 in the U.S. or Europe might be $10 here. A coffee for 4,000 pesos (around $4 or more) is expensive when you consider that many salaries don’t keep up with inflation. That’s why a lot of people either cut back on certain luxuries or adjust their spending habits. It’s definitely a weird economic reality where some things feel absurdly overpriced.

I think that many there don't have any choice at all. I noticed that about the installment payments. @Melibaires how does that work? What happens if if someone doesn't pay an installment? Are those installments on credit cards or a debit card? I wondered about that as I went to Jumbo and I saw a bunch of stuff in multiple payments. I guess that's the only way some can afford stuff.

I didn't understand about that overpriced chocolate. I saw that while I was in BA. What do they do with it if it expires? I can't imagine them finding many people wanting to buy $10 chocolate bars. I was SHOCKED at the price of coffee in Palermo. I thought it was only in Palermo but my friend is down there now and she said that it's like that everywhere even in non touristy areas like downtown. She went to some old cafe downtown and said it was cool but 6,000 pesos for a cappuccino. That is US type prices.

There is some disconnect of either all these places have some money laundering operation or everyone can afford it because no way they can all stay in business long.

@daveholman what is your experience since moving down there? Are places full? Are you finding it's expensive coffee just in touristy Palermo or is it everywhere? What is the cheapest coffee you have found?

 

[CecilM]

I think that many there don't have any choice at all. I noticed that about the installment payments. @Melibaires how does that work? What happens if if someone doesn't pay an installment? Are those installments on credit cards or a debit card? I wondered about that as I went to Jumbo and I saw a bunch of stuff in multiple payments. I guess that's the only way some can afford stuff.

I didn't understand about that overpriced chocolate. I saw that while I was in BA. What do they do with it if it expires? I can't imagine them finding many people wanting to buy $10 chocolate bars. I was SHOCKED at the price of coffee in Palermo. I thought it was only in Palermo but my friend is down there now and she said that it's like that everywhere even in non touristy areas like downtown. She went to some old cafe downtown and said it was cool but 6,000 pesos for a cappuccino. That is US type prices.

There is some disconnect of either all these places have some money laundering operation or everyone can afford it because no way they can all stay in business long.

@daveholman what is your experience since moving down there? Are places full? Are you finding it's expensive coffee just in touristy Palermo or is it everywhere? What is the cheapest coffee you have found?

I have a local friend who unexpectedly had her fridge break, so she had to rush out to buy a new one. The technician told her it was better to buy a new one rather than repair it due to the cost of the spare parts. Since this had a big impact on her finances, she decided to buy it in 12 interest-free installments at Fravega. I know several stores offer products in installments.

As far as I know, if you don’t pay, they call you several times to remind you. If you still don’t pay after a while, the debt goes to a collection agency, which manages the recovery with interest. In the meantime, the person’s name gets listed in "Veraz", which is a credit registry here. This means they can’t take out loans or use credit until the debt is settled.