Border inflation: how much does it cost Uruguayans in Salto to shop in Entre Ríos

Depending on the weather, it’s common to see neighbors from some countries swarming around Argentina. So you can see Chileans enter Mendoza to shop, eat or go to the cinema. Or to Uruguayans to go to Entre Ríos to shop. This is called borderline inflation. A private survey, for example, proves this buy a basket with the same quantity of products in Concordia can come leave today up to 63% less what to do the Uruguayan city of Salto.

The devaluation of the Argentine peso and the exchange rate difference with Uruguay encourages many inhabitants of the neighboring country to cross the pond to find cheaper prices.

The latest measurement in July reflects the maximum price difference reached since 2015 when the indicator began to be calculated. Thus, according to a study by the Catholic University of Uruguay (UCU), buy the same basket of products in the city of Entre Ríos costs 63.5% less do it in the nearby Uruguayan city of Salto, both of which are separated only by the Uruguay River.

The measurement for July reflects the highest price gap reached since the Border Price Indicator (IPF) was prepared, which started in July 2015. The smallest difference was recorded in October 2017, when it was only 5%. And the middle point was in June and September 2018, by almost 28%. In April 2019 it registered 30%, and then jumped sharply in September 2021 when it reached 55.30%..

The indicator measured last month shows that, for the set of selected goods, and given their weighting in the structure of household consumption expenditure, or the observed expenditure trend, it is 63% cheaper to buy this basket in the city ​​of Concordia than in the city of Salto. Seen from Concordia’s point of view, the indicator shows that Salto is 174% more expensive than Concordia.

the category food and soft drinks, the greatest difference in price is recorded. “All items are more expensive in Salto and the price difference for the entire division reaches 201%. This is equivalent to saying that, in this product category, Concordia costs 67% less than Salto “, underlines the report.

The elements examined were: bread flute, sweet biscuits, alfajores, rice, wheat flour, minced meat, ham, sausage, tuna, milk, yogurt, grated cheese, eggs, butter, lentils, sugar, mayonnaise, instant coffee , yerba mate, among others.

Presents a single product a price difference of less than 100% (which is cooked ham)10 out of 30 items reach a price gap between 100% and 200% and for 19 items the price difference is greater than 200%.

To compare the prices of both countries, they use the reference exchange rate of the “blue dollar”.

Alcoholic drinks and cigarettesreflects more differences, 234% more in the Uruguayan city than in Argentina. Wine, beer and cigarettes cost 121%, 369% and 316% more in Salto than in Concordia, respectively. Y whiskey is 54% more expensive.

in category clothing and footwear, the difference is 85%. “Although there is a dispersion in the price differences observed in this division, all items considered are more expensive in Salto,” the report highlights. The clothing category has a greater price difference and stands between 122% and 1224%. When it comes to sports shoes, the price differences are smaller and are between 21% and 36%.

At this point, according to the analysis of the Catholic University of Uruguay (UCU), it follows that since then From November 2015 to September 2018 Salto was cheaper. In April 2019, this situation has reversed and the price gap widens, reaching 85.1% in July 2022.

In household products, the price difference reaches 131%. “The most significant differences can be seen in the soap powder, which reaches a gap of 222%, while in the detergent it is 254%”, warn from the UCU. Analyzing the evolution of this division, it can be seen that from 2021 the gap widens, remaining above 100%.

transportation and fuel: in this category we consider the prices of “super gasoline” (186.3% more in the Salto), “diesel” (168.5% more in the Salto) and “covers”. cheaper in Concordia, with a small margin of 0.9%.

the category meals outside the homeshow a very significant average difference, prices in Salto are 193.6% more expensive than in Concordia. Soft drinks are 157% more expensive, mineral water 86%, complete hamburger 253% and a pizza with 146% mozzarella.

The last measured element is various goods and services: “This division achieved a significant price difference on most items respondents, reaching on average 222% higher rates in Salto than in Concordia. The differences recorded were 369.8% for shampoos, 253.3% for toothpaste, 160% for toilet soap, 342.9% for deodorant and 156.5% for toilet paper. .

“This relative cost increase of the city of Salto compared to the city of Concordia includes both the economic factors of the Argentine and Uruguayan economy, and the evolution of the nominal exchange rate and the internal prices of each marketas well as the specific pricing strategies for each of the interviewed establishments “, underlines the document prepared in Uruguay.

In July, the consumer price index in Argentina it jumped 7.4%, has 46.2% so far this year and records 71% in the interannual measurement. By comparison, in Uruguay, on the same date, monthly inflation was 0.77%, accumulated in the first seven months of the year of 6.86% and accumulated in the last 12 months was 9.56%. The “Food and Soft Drinks” division has accumulated 8.61% so far this year.

YN