Argentina devalued: how many hours of work does the person who receives the minimum wage need to buy different goods and how does he position himself in the region

In the first four months of the year, the cumulative increase in prices reached 17.6% and last year it accumulated an increase of 46.3% according to the National Institute of Statistics and Censuses ( Indec). After 36.1% recorded in 2020, theThe price increase for 2021 is projected by the market above 47%, far from the target set by the government, which provides for a rate of 29% for the whole year.

In this context, a study carried out by Target market took into account the working hours necessary for a living and mobile minimum wage measured in dollars to buy different products in Latin American countries, has shown that Argentina is expensive for its citizens and very cheap for foreigners.

In the case of the purchase of a Burger, in Venezuela, 960 hours of work are required, measured by their living and mobile minimum wage, in Argentina 4 hours 36 minutes while at the other extreme in Uruguay it takes 2 hours 43 minutes and in Chile 2 hours 13 minutes.

“In the case of many products marketed in Argentina, despite the recent adjustment of the minimum living and mobile wage (SMVM) in pesos and as a result of the devaluation of the local currency against the North American currency, in our country, it takes more working hours on average than in the rest of the cases to be able to acquire them», He explained to Infobae Damián Di Pace, director of the consulting firm.

Argentina today has the second lowest living and mobile minimum wage measured in Latin American dollars. The other aspect of this situation is that compared to higher wages in other Latin American countries, once the pandemic is overcome, goods and services sold in Argentina measured in dollars are very cheap for foreigners (Damián Di Pace)

Meanwhile, in the case of purchasing a cola sodaArgentina is once again one of the most backward countries. In Venezuela it takes 549 hours and 36 minutes, in the country 1 hour 29 minutes, while at the other extreme in Peru it takes 37 minutes and in Ecuador 29 minutes.

“Argentina today has the second lowest living and mobile minimum wage measured in Latin American dollars. The other aspect of this situation is that compared to the higher wages in other Latin American countries, once the pandemic is overcome, goods and services sold in Argentina measured in dollars are very cheap for foreigners ”, Di Pace analyzed.

And he added: “This opens an opportunity for the arrival of high-consumption tourists in the Argentinian market. However, It will be necessary to assess whether the exchange time leads to this advantage being diluted over time.Said the consumer specialist.

In the case of the purchase of a BeerIn Venezuela it takes 602 hours and 24 minutes, in Chile 2 hours 16 minutes, in Argentina 1 hour 53 minutes. In Ecuador it takes 1 hour 12 minutes and in Colombia 1 hour.

If buying a coffee is considered, in Venezuela it takes 516 hours, in Mexico 2 hours 25 minutes, in Peru 2 hours 4 minutes. On the other side of the table, in Brazil, it takes 1 hour 19 minutes and in Colombia 1 hour and 3 minutes; both countries with local coffee production.

“If we take into account purchasing power parity, the The number of hours it takes to buy the same goods may increase if there is a widening of exchange rate spreads throughout the year and a devaluation of the peso against the dollar in the parallel market against the market. official., since Argentines would see their minimum wage deteriorate in order to buy these same products in other Latin American countries, ”concluded Di Pace.

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