Don’t cry over inflation if you live in Argentina

With inflation at an estimated 7.2%, Kiwis are feeling the cost of living bite – but spare a thought for New Zealanders abroad, especially in Argentina, where inflation now sits at about 90%.

While inflation is a perennial problem in the South American country, in recent years it’s become progressively worse.

Kiwi Samuel Fitzgerald has been running a taco restaurant in Buenos Aires, called Georgie’s, for just over four years, though he has lived in Argentina for seven years. He says it has really been during the last few years that inflation has become out of control.

‘‘It’s almost impossible to do any kind of projection for the restaurant,’’ Fitzgerald told Stuff.

‘‘We raise the prices almost every week, and the suppliers pass me price lists every other day.’’

While Fitzgerald runs a successful business and lives comfortably, he says it is difficult to save money – most savings are in United States dollars, kept ‘‘under the mattress’’. Others keep their US dollars locked away in bank safety deposit boxes.

Few Argentines have faith in the country’s banking system, and, with constant inflation, it’s ‘‘pointless’’ to hold on to pesos, he says.

However, Argentines are ‘‘somewhat used to it’’, and dealing with the price increases and uncertainty feels like a normal part of life, Fitzgerald says.

Lee Ralph has lived in Buenos Aires for just over two years. He’s

married to an Argentine, Daniela Lo´pez.

While Argentina is an ‘‘awesome place to live’’, the inflation is crazy, he says.

‘‘It’s unbelievable how prices change from week to week.’’

Ralph has been working for a multinational since February last year. He started on a salary of 70,000 pesos per month. Now he’s earning

150,000 pesos (NZ$1247) – ‘‘that’s how much it’s jumped up in just under a year,’’ he says.

Every few months, he gets a salary adjustment of between 12% and 16%. Even with the increases in salary, though, he thinks wages are around 5% behind inflation.

What Ralph does notice is the cost of his monthly shop – which has gone from about 15,000 pesos a

month to 20,000 pesos (approximately NZ$173) – though his grocery bill is one few Kiwis would complain about.

Rents have also been rising rapidly. When Ralph moved to Argentina, he was paying 28,000 pesos per month. When he and his wife moved out nine months later, the landlord listed the apartment for close to 60,000 pesos.

Now, it’s impossible for him to find anything under 50,000 pesos (NZ$415).

Ideally, he’d find a job paying US dollars – he interviewed for one which paid in greenbacks, delivered by courier to the employee’s door once a month.

In Argentina, the purchase of homes or apartments is typically done in US banknotes – something Ralph has heard about himself, when an American friend bought a house ‘‘with a bag full of cash’’.

While 90% a month inflation would leave most Kiwis shellshocked, Ralph finds that Argen

tines are stoical in dealing with the situation, and he’s learned to take the same approach.

‘‘They complain, the same as everyone,’’ he says. ‘‘But we just get on with it, I guess.’’

Economic woes aside, there’s a lot to love about Argentina, according to Ralph – especially its warm weather, friendly people, supercheap public transport, and good food.

‘‘On the whole, I feel like the good outweighs the bad,’’ he says.

‘‘It’s unbelievable how prices change from week to week . . . But we just get on with it, I guess.’’ Lee Ralph, Kiwi living in Buenos Aires