A report from a university in Uruguay reveals that prices in Argentina are almost twice as cheap as in the neighboring country. Here is the detail of the report.
During the last few months, it is common to see long lines at Customs posts and supermarkets on the Argentine side sell cars with Uruguayan license plates that take advantage of this price difference between both countries. Now, a report from a Uruguayan university revealed that this gap is today the highest since 2015.
Prices in Salto (Uruguay) were 180% more expensive during September than in Concordia (Argentina) and it is the largest difference since July 2015. It is worth mentioning that, if it is taken into account that this study refers to September prices, it is logical to assume that this gap widened after the surge in the dollar that led it to trade above the $1,000. Likewise, the work specified that the lowest spread that was observed was verified in March 2018 when it had been 38%.
This difference allows Easterners to buy food at a third of what they would pay in their country, according to the report carried out by the Catholic University of Campus Salto in the neighboring country. The work evaluated the behavior of the prices in the border area based on the study of 60 products in large stores during September in the border cities of Salto and Concordia.
The data from the item-by-item report
The work “Border Price Indicator (IPF)” of the Economic Observatory is carried out in order to evaluate the impact that the Argentine economy has on those neighboring cities, which see their economic life seriously affected.
The greatest concern focuses on the food issue, given that the prices of 30 products surveyed showed a difference of 190%. The highest margin was detected in mayonnaise and powdered desserts where the margin reached $700. Other products with significant margins are wine (237%), beers (376%) and cigarettes (283%).
The study also covered clothing where the gap detected is 76% and, with regard to fuel, the price difference rose to 193%.
Among personal hygiene goods, margins of 503% were revealed in deodorants, 446% in shampoo, 380% in toilet soaps, 316% in toothpaste and 148% in toilet paper.
Source: Ambito
