Argentina: Inflation Resumes Its Decline, But . . .

[Wally]

One thing is for sure. Nothing is certain in Argentina. People said it will never get as cheap for tourists as 2023 but you never know. The way things are looking it could get cheap again for tourists.

 

[Blockchain]

One thing is for sure. Nothing is certain in Argentina. People said it will never get as cheap for tourists as 2023 but you never know. The way things are looking it could get cheap again for tourists.

I hate to admit it but but that's what I am hoping for. China looks like they are devaluating their currency and Argentina has half their reserves with the debt swap with China. This trade war is not going to be good for Argentina but could be excellent for tourists and tourism next year. If Milei fails tourism could explode again next year.

Sucks for locals but would love it!

 

[JonJLA]

I hate to admit it but but that's what I am hoping for. China looks like they are devaluating their currency and Argentina has half their reserves with the debt swap with China. This trade war is not going to be good for Argentina but could be excellent for tourists and tourism next year. If Milei fails tourism could explode again next year.

Sucks for locals but would love it!

That would be bad for locals but tourism will boom again if the blue dollar goes up. I am lucky. I rent out my apartment in Soho and even with tourism down it has done ok. Prices are lower but if you are in a good area of Soho or Hollywood or other good parts of Palermo and have a nice place you will do ok. My apartment is in Palermo Uno a high rise in Soho. Much of the building was Airbnbs but many owners have switched to long term rentals so maybe that is why my place is still doing ok.

 

[daveholman]

I hate to admit it but but that's what I am hoping for. China looks like they are devaluating their currency and Argentina has half their reserves with the debt swap with China. This trade war is not going to be good for Argentina but could be excellent for tourists and tourism next year. If Milei fails tourism could explode again next year.

Sucks for locals but would love it!

A US trade war with China will be a boon to Argentina and all of LATAM; their exports will be comparatively cheaper than China's. IOW if shoes made here are tariffed 10%, while shoes made in China have a 150% tariff, guess who sells more shoes?
And Trump deliberately weakening the dollar is great for every country that doesn't use the dollar.

 

[Wally]

A US trade war with China will be a boon to Argentina and all of LATAM; their exports will be comparatively cheaper than China's. IOW if shoes made here are tariffed 10%, while shoes made in China have a 150% tariff, guess who sells more shoes?
And Trump deliberately weakening the dollar is great for every country that doesn't use the dollar.

Problem is manufacturing here is terrible. Quality is terrible. The protectionist policies have enabled local companies to never have competed. Quality sucks here. Like China or hate them, not many countries can match their productivity and prices. Pathetic thing about Argentina is even if china had a 150% tariff they would probably still do better than locally made stuff. With few exceptions here quality is terrible and prices are very high. Peso is still terribly overvalued.

 

[daveholman]

Problem is manufacturing here is terrible. Quality is terrible. The protectionist policies have enabled local companies to never have competed. Quality sucks here. Like China or hate them, not many countries can match their productivity and prices. Pathetic thing about Argentina is even if china had a 150% tariff they would probably still do better than locally made stuff. With few exceptions here quality is terrible and prices are very high. Peso is still terribly overvalued.

As opposed to China? 😉

 

[earlyretirement]

A US trade war with China will be a boon to Argentina and all of LATAM

Absolutely 100% correct. I posted about it on X today.

 

[Betsy Ross]

Most people that I know in the USA that voted for Trump regret it now.

 

[import export]

There is a Bot on X that tracks the price differences each month in the basic food basket. It jumped up 9.87% so far in January which is concerning.

 

[ElQueso]

There is a Bot on X that tracks the price differences each month in the basic food basket. It jumped up 9.87% so far in January which is concerning.

And just watch. Some how the government will claim that inflation using that same basket was 2%. 🤣

 

[jbeas176]

trump hurt the usa farmers in his fist term. he continues to hirt them. he usual next move is to take the tax payers money and give them a subsidy. damn those tariffs work

 

[Wally]

trump hurt the usa farmers in his fist term. he continues to hirt them. he usual next move is to take the tax payers money and give them a subsidy. damn those tariffs work

Will be interesting to see how the next Presidential elections go both in USA and Argentina.

 

[Flamingo]

Will be interesting to see how the next Presidential elections go both in USA and Argentina.

I agree. There is a paradox where most that I speak to say their salaries aren't keeping up with inflation but then some polls saying Milei's image has improved. We will see how long this keeps up.

Paradoja en Argentina: sube la imagen de Milei pese a que 74% afirma que su salario pierde contra la inflación

Informe de Zentrix Consultora revela que la imagen de Milei sube al 45% mientras el 74,7% de los argentinos siente que su salario no alcanza a la inflación.

eleconomista.com.ar

 

[Wally]

I agree. There is a paradox where most that I speak to say their salaries aren't keeping up with inflation but then some polls saying Milei's image has improved. We will see how long this keeps up.

Paradoja en Argentina: sube la imagen de Milei pese a que 74% afirma que su salario pierde contra la inflación

Informe de Zentrix Consultora revela que la imagen de Milei sube al 45% mientras el 74,7% de los argentinos siente que su salario no alcanza a la inflación.

eleconomista.com.ar

As long as people see things improving they will hold out and have a little more patience and be optimistic. Things have been dicey in Argentina since the big crash at the end of 2001. Ups and downs but more downs than up. People might have to have 2 jobs to get to the end of the month but they at least can find a job. That wasn't the case before.

Inflation will probably never stop going up here but when people can go to the supermarket and have relatively stable prices gives people hope. Milei is still very popular with the younger generations that are now able to order from the US and China. Once you open the floodgates for affordable electronics and clothes and personal items that buys a lot of goodwill.

Prices of electronics continues to come down. Still expensive but coming down as more import taxes are removed.