Despite a greater commercial opening, the local prices of the basic food basket became more expensive with respect to Brazil, Uruguay and Chile. What role did the exchange rate in this phenomenon had?
The debate among economists about whether dollar of equilibrium is overvalued or undervalued It is still a hot topic. After the drastic devaluation of the real in November, which generated pressure on the local exchange rate, the government chose not to apply abrupt devaluations. However, this possibility continues to be a possibility, since the market anticipates changes after the possible exit of the exchange rate.
Beyond this discussion, the PXQ consultancy developed a report and added its perspective to the analysis, in which it compares local prices with internationals, thus contributing to the controversy over the exchange situation.
According to survey, the Government implemented a set of 7 measures aimed at improving competition and lowering internal prices, in search of reducing inflation. The commercial opening, generated an environment of greater competitiveness and some economic sectes adjusted according to international market conditions.
In this sense, PXQ analyzes that although domestic prices They could continue being above their international comparisons, The effect of the measures implemented should have reduced the difference in relative terms, provided that other variables were constant. However, That did not happen when some products of the basic basket are compared.
According to Álvarez Agis’s consultant, Between December 2023 and December 2024, first year by Javier Milei, Argentina became more expensive.
What products are more expensive in Argentina than Brazil, Chile and Uruguay:
- Lactal Pan (USD VS Chile and Brazil with 2.2 USD and Uruguay 1,4 USD).
- Milk (2 USD VS 1.1 USD in Chile, USD 1.4 in Uruguay and USD 0.8 in Brazil)
- Café (18.8 USD vs 8.6 USD in Chile, USD 13.3 in UY, 5.7usd BR).
- Rice (2.6 USD vs 1.9 USD Chile, USD 1.9 at UY, 1.4 USD in BR).
- Hamburger (4.7usd vs. 3,6 USD in Chile, 4usd Uy, 1.3 USD in BR).
- Jean (120 USD vs 60.6 USD in Chile, 109.8 USD in UY, 70.8 USD in BR)
- Sneakers (147.7 USD vs 73 USD in Chile, USD $ 11.7 USD in UY, 78.2usd in BR)
- Diver (114.2 USD vs 56.7 USD in Chile, USD 94.3 in UY, USD 68.3 in BR)
- T -shirt (32.8 USD vs. 19.3 USD in Chile, 33.1 USD in UY, USD 19.7 in BR).
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According to Álvarez Agis’s consultant, “the Argentine economy is more open, our greedy entrepreneurs are more threatened by competition and, thus and all, products in the local market are more expensive than in the international. Conclusion: prices were not advanced, the exchange rate was delayed. ”
Source: Ambito
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