The price of an Ugi's pie has increased yet again, now to 16 pesos. The last increase was in January when it went from 12 to 14. There was a brief period in March when they lowered the price back to 12. This promotion was ended and recently it was raised still to 16 pesos. I've updated the table below which shows a significant appreciation in the price of Ugi's pizza compared to pre-crisis levels in the 1990s:
| Date | Price in Pesos | Exchange Rate | Price in Dollars | CPI Deflator | Constant 2000 Dollars | % Change since 2000 |
| 01/01/00 | 2 | 1 | $2.00 | 1 | $2.00 | - |
| 01/25/04 | 3.5 | 2.98 | $1.17 | 1.1 | $1.07 | -46.00% |
| 09/04/06 | 4.8 | 3.1 | $1.55 | 1.17 | $1.32 | -34.00% |
| 02/01/08 | 6.9 | 3.16 | $2.18 | 1.25 | $1.75 | -13.00% |
| 03/01/08 | 8 | 3.17 | $2.52 | 1.25 | $2.02 | 1.00% |
| 04/01/08 | 10 | 3.17 | $3.15 | 1.25 | $2.52 | 26.00% |
| 03/01/09 | 12 | 3.65 | $3.29 | 1.23 | $2.67 | 33.00% |
| 01/15/10 | 14 | 3.86 | $3.63 | 1.24 | $2.91 | 46.00% |
| 3/1/5/2010 | 11.99 | 3.89 | $3.08 | 1.24 | $2.48 | 24.00% |
| 06/01/10 | 16 | 3.94 | $4.06 | 1.24 | $3.27 | 64.00% |
This last increase has occurred in the context of a strong dollar and stable [or falling] commodity prices, as such I can say with a certain confidence that this most recent increase is due to local inflationary pressures [all the pizzerias have raised their prices recently].
With accelerating domestic inflation, a weak euro and uncertainty surrounding the global economy, I wonder how much longer the [very slowly] devaluating peg can be sustained.
The photo above is from the Ugi's in San Telmo on Carlos Calvo and Chacabuco. It has to rank as the most forlorn of their outposts. Granted, only a crazy gringo like me would think to eat pizza at 6pm.
See also my previous posts on this topic; Ugi's Index 12 pesos [March 2009], Ugi's Index 14 pesos [March 2010], and Ugi's for the Argentimes, and hyperinflation, powers of ten.
3 comments:
Haha! I love ugi's! Best day after a night out meal when at work! but it is crazy and sad watching the prices go up, but you never walk out of Ugi's not thinking you got a good deal!
This is great idea! Everybody knows prices are rocketing up but it's great to see it progressing.
I've linked to your article and pictures on my blog post: http://www.gringostarr.net/posts/2010/06/on-the-up-and-up/
When I visited Brazil, I got a taste of the Ugi. I loved it. Unfortunately where I live (Europe), I can't buy it here. But everything is same here, prices are going up but unfortunately the salarys are still the same (food prices have gone up by 20% last year). But because I live in poorer part of the Europe, it's quite a remarkable expense increase.
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