President Javier Milei and his finance chief criticised a globally known Argentine actor for complaining that the country’s staple food was overpriced, stirring debate about how expensive Argentina has become in dollar terms.
Ricardo Darín, the award-winning star of Netflix science-fiction hit The Eternaut drew the administration’s ire when he told a popular weekend dinner-show host he paid 48,000 pesos (US$42) for a dozen empanadas and questioned Milei’s latest tax measures meant to spur dollar spending. The government accused the actor of snobbery and making generalisations after buying a gourmet version of the savoury pastry.
The price of empanadas — and the impact of Milei’s policies on pocketbook issues — dominated headlines Monday, a preview of what’s to come as October midterm elections inch closer. “There’s a lot of people having a very hard time,” Darín said Saturday on Mirtha Legrand’s show.
“Empanadas aren’t that expensive, Ricardito,” Economy Minister Luis Caputo shot back in a Sunday interview. “People can eat good empanadas for 16,000 pesos,” Caputo told La Nación. “I’m glad he can eat the most expensive ones.” Milei joined in Monday, posting an AI-generated image of Darin from an Instagram story holding a small gold empanada in a jewellery box.
Empanadas — a classic takeout option in Argentina — range in price depending on size, ingredients and restaurant status. Mi Gusto, a popular chain on the higher end, sells a dozen for 47,900 pesos. But the median price for 12 in the city of Buenos Aires was 22,000, closer to Caputo’s estimate, according to data from the municipal government.
Darin defended his remarks Monday when asked by a local television station. “Of course there are empanadas of every kind — more expensive, cheaper, depending on the neighbourhood,” he told América TV. “But it’s clear what we’re talking about. Prices are elevated. People know it.”
The President’s measures have forcefully tamed inflation, bringing monthly price hikes down to 2.8 percent from a peak of 25.5 percent when he took office.
But in dollar terms, the peso has strengthened significantly since Milei took office. It was one of the five best-performing currencies around the world in 2024, gaining more than 40 percent against the US dollar. For locals and foreigners alike that’s also made Argentina home to the world’s second most expensive Big Mac (US$7) and Latin America’s priciest cup of coffee (US$3.50).
Milei’s economy will a dominant ballot question in October’s midterm vote, when Argentines will elect half of the lower house House of Deputies and a third of the Senate. Investors are watching the election closely to see whether the country is willing to keep backing the libertarian economist in longer-term reforms.
“For the average voter, it’s a blessing to be expensive in dollar terms because their buying power goes up,” said economist Martin Rapetti, founder of consultancy Equilibra. “The thing is salaries in dollar terms went up a ton, but buying power fell.”
Prices for some items in the capital, like the popular pastry, have increased faster than inflation. Empanada prices are up 240 percent in the city since November 2023, compared with overall consumer price gains of 219 percent over the same period.
“It is true that the price of empanadas exceeds cumulative inflation and I think it’s owed mainly to the fact that the previous government either subsidised or otherwise stepped on food prices,” said Sebastián Menescaldi, an economist at Buenos Aires-based consultancy EcoGo.
Everything from wheat flour to milk received government subsidies under Milei’s predecessor, Alberto Fernández, while barriers to meat exports forced down local prices — all of which the libertarian president removed. Meanwhile, price increases since he took office have outpaced pay increases by 3.6 percent, Menescaldi calculated using the national statistics agency.
“People lost purchasing power,” he said.
by Manuela Tobias, Bloomberg
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