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Montevideo, July 4th 2022 - 02:33 UTC

 

 

Argentina less expensive than Uruguay, study shows

Thursday, March 10th 2022 - 19:55 UTC
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Under the present conditions, the price gap looked prone to widening, according to the researchers. Under the present conditions, the price gap looked prone to widening, according to the researchers.

According to a study by the Catholic University of Uruguay (UCU), that measured prices in Salto, Uruguay, and Concordia, Argentina, the former turned out to be 130.3% more expensive than the latter, it was reported.

The Economic Observatory of the city of Salto, under the Catholic University of Uruguay (UCU), Argentina found Argentina was 56.6% less expensive than Uruguay.

The researchers came to that conclusion after measuring the prices of a basket of basic products in Salto and Concordia, both neighboring cities separated only by the Uruguay River.

Due to this, Uruguayans used to cross into the Argentine city for their shopping, which stopped once the borders were closed due to COVID-19 restrictions.

The UCU study, called Border Price Indicator (IPF), takes the prices of 60 items -services are not considered- at the value paid by consumers directly from the shelves. To make the comparison between prices in both countries, they use the exchange rate reference of the “blue dollar” (the informal exchange rate which is roughly twice as high as the official one).

Price differ depending on each category but they are always higher on the Uruguayan side, the study determined.

- Food and non-alcoholic beverages: Salto is 152% more expensive than Concordia, or in other words, Concordia is 60.3% cheaper than Salto.
- Alcoholic beverages and cigarettes: Salto was 209% more expensive. Wine 149%, beer 230%, cigarettes 252%, and whisky 83%.
- Clothing and footwear: Salto is 42% more expensive.
- Household products: Salto 128% higher. Powdered soap 264.7%, detergent 248.3%, towels 3% and sheets 27.6%.
- Transportation and fuel: Gasoline was 164.9% in Salto. Diesel 119% and tires 13.8%.
- Restaurants: Salto is 156% more expensive than Concordia. Soft drinks 153.3%, mineral water 80.9%, hamburgers 190.1%, and mozzarella pizza 118.7%.
- Miscellaneous goods and services: 123% higher in Salto. Shampoo 358.7%, toothpaste 239.3%, toilet soap 213.1%, deodorant 255.6% and toilet paper 38.8%.

“In Argentina, the inflation rate is among the highest in the world. The general price level registered in December 2021 a year-on-year increase of 50.9%”, the study also pointed out.

Under the present conditions, the price gap looked prone to widening, according to the researchers.

 

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