The inflation in Argentina it is a now proverbial phenomenon, a term of comparison to indicate an extremely high cost of living for the majority of the population. With the new government of Javier Milei, albeit through a Shock therapy is anything but painless, the data is coming back under control, but remains superior than any other country in the Western world: in August it slowed to 4,2% on a monthly basis, but remained on the 95% on an annual basis, that is, prices practically doubled compared to a year ago. But what does all this mean in concrete terms? An interesting analysis of the Centro Studi para la Recuperacion Argentina, which quantifies the effects of inflation on people's daily lives, comparing it with that of other South American countries and Europe.
The cost of living in Argentina
The study revealed that The average cost of living for a person in Argentina who lives in rent it's almost 5 minimum wages, while that of a typical family (couple with two children) is equivalent to more than 14 minimum wages, to be able to buy basic goods and services and pay the rent for a three-room apartment in the city. In near Brazil, the data drops to less than 3 and less than 9 minimum wages respectively. Italy is not taken as a parameter because we do not have a minimum wage, but for example it turns out that in France a minimum wage is enough for a single person to live in rented accommodation, while for a family of four just under 3 are enough, a fifth compared to Argentina. Or rather, 11 minimum wages less to make ends meet. This is because, even if theinflation is deflating, for the majority of the Argentine population is weighing heavily maxi devaluation of the peso, which has depreciated by 118% since last December 10, when the Milei government took office.
Food expenses
The research centre also analysed the various items of expenditure, starting with the one that is fundamental for survival: thesupply. It turned out that compared to the Latin American area, in Argentina an average of double income to buy a food basket of 2.400 calories a day, and on average an income almost five times higher than European countries. But above all, it is not enough not even an Argentine minimum wage, that is 105.500 pesos in July 2024, to guarantee that basket, which ends up costing almost 110% of that amount, while for a German citizen who earns less than everyone else it costs only 18%. In Spain and France it barely exceeds 20% of the minimum wage, Brazil remains below 70%.
In addition to eating, in everyday life we dress and move. CERA used a parameter pair of Nike shoes, which is certainly not a necessary good and is more expensive because it is imported, but it costs 70% of a minimum wage, while in Germany it is 4%. In Spain, a litre of fuel costs 0,04% of the minimum wage, compared to 0,55% in Argentina: more than ten times as much.
Argentina: there is a crisis in tourism too
In all this, the situation has been made worse by the tourism crisis. In a country that desperately needs dollar reserves to guarantee its creditors, and which obtains them mainly through exports but also through tourism, Milei's policies have made it increasingly less convenient to travel to Argentina for those paying in dollars or euros. Staying costs at least 20% more, while shopping in Buenos Aires and its surroundings is out of the question, everything is much more expensive not only compared to Europe, but also to the United States, also because theArgentina produces little and imports almost all goods that it markets. According to official data from the ministry, the paradox has been reached that Argentines who travel abroad have exceeded, in number, foreign visitors to Argentina: 5,2 million between January and July of this year, against 4 million.
