Inflation in Argentina

Even if you have only been living in Argentina for a couple of weeks, you will have noticed the effects of inflation (which is now reported at annual rate of 9.5% by the government). The fee tacked onto your ATM withdrawals has increased from $16.40 pesos to $17.25 pesos, the taxi fares have increased by about 26%, and restaurant menus throughout the city have prices scratched out and rewritten with adjustments for inflation.

But if these things have some how eluded you, then the lines and petitions outside of the subte this week must have certainly caught your attention. Wondering whats going on (besides the 127% price increase, of course!)?

This Friday, the Kirchner Administration turned over control of the subte network to the capital city government, while simultaneously halving the subsidies to $360 million pesos (or $83 million USD). These combined actions are what lead to the ticket increase from $1.10 pesos to $2.50 pesos.

Portenos waited in lines almost 60 persons deep on Thursday in an attempt to purchase bulk subte tickets before the price change went into effect. Unfortunately, it was not worth the wait as tickets were limited to two per person.

Outraged by the sudden change, the public has taken to protesting the price increases with signature petitions at major subte stops (such as 9 de Julio and Catedral). So if someone approaches you with a clip-board and pen in hand, you know what they are asking for!

Post any photos or thoughts that you have on the subte crisis in Buenos Aires!

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