Friday, August 8, 2014

Product Pricing Comparison: Argentina Then And Now

So the international rumor mill suggests that Argentina’s economy is hitting an all-time low. So I decided to do a bit of pricing comparison with products I spot-checked last year versus the actual cost today. Have the prices dropped? Do they ever in any part of the world? The answer would be no. However, are things really that drastic? Let’s find out.

On July 29th, 2014, the cost of the US dollar in Argentine pesos was: 8.19
On August 1st, 2014, the cost of the US dollar in Argentine pesos was: 8.23
On August 4th, 2014, the cost of the US dollar in Argentine pesos was: 8.26
On August 8th, 2014, the cost of the US dollar in Argentine pesos was: 8.27
On August 24th, 2014, the cost of the US dollar in Argentine pesos was: 8.39
On September 2nd, 2014, the cost of the US dollar in Argentine pesos was: 8.40

The photo on the left is the cost of the product from a year ago. The one on the right is the current price.
Yikes! That's a 3.10 increase in Argentine pesos. In US dollars this would cost you $1.04.

Wait! What? Can it be? No. That's not possible. He must have switched the images around. Sorry to disappoint you folks but the prices on these products are correct. The Gatorade on the left was once 9.50 Argentine pesos and a year later it has dropped to 7.25 Argentine pesos. That's a 2.25 drop. In US dollars this would be .88 cents.

Activia's liquid yogurt might give you the runs but you'll be 51 Argentine cents richer. The price went down from 15.50 to 14.99. In US dollars this would be $1.81.

Oh man! I was really looking forward to cleaning the wax out of my ears this weekend. Q-soft, which is basically a Q-tip has risen by 2.30 Argentine pesos. In US dollars this would be $1.69.
Oh ... SUGAR! The cost of cereal has definitely jumped in a year by a whopping 18.14 Argentine pesos. In US dollars this would be $4.41. Don't fret boys and girls! There are plenty of generic brands on sale at local supermarkets that taste just the same but at a more affordable price.
 
Hellmann's Ketchup has a nicer looking package but the price has gone up from 8.65 to 11.45 Argentine pesos That's a 2.80 mark up. In US dollars, that's $1.39.

Now you're probably wondering what the big deal is. After all, as long as expats have U.S. dollars, the prices are affordable more so in Argentina than they are in the States. That's a good point, but you need to consider the fact that every expat has a different financial situation. Those who continue to earn money in US dollars are better off than those who have depleted their supply of dollars (like yours truly) and are now solely dependent on Argentine pesos.

I should point out that a lot of these items have generic brands or have Argentine equivalent products that are (in most cases) cheaper.

4 comments:

  1. After a long hiatus I´m back to the blogging world. I enjoyed reading about the price increases and your comments along the way.

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    Replies
    1. Thank you so much! I really enjoy your blog as well and look forward to reading more about your adventures in Chile!

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