It’s no secret that at the end of 2001, Argentina suffered an economic collapse that no one fully understood. The government openly put the blame on the International Monetary Fund and the World Bank. The wealthy elite throughout the country also shared part of the blame. Instead of investing in the natural assets within the country, money was being siphoned out of Argentina through an enormous fear-based straw that almost sucked the country dry.
Before the collapse Buenos Aires was one of the most expensive cities in the world, but today you can take a taxi across town or eat a fantastic steak dinner for about U.S. $10. This is despite the high inflation rates that have plagued the country since 2001. The government claims a rate of 12%, and the actual rate is probably several percent higher. Nevertheless, Buenos Aires is still considered an excellent place to live, especially for expats, thanks to its high level of internal development and low cost of living.
Buenos Aires is especially attractive to residents who earn an income in Dollars, Euros or Pounds. Monthly food costs in Buenos Aires average around $130 U.S. Dollars and things like soap, garbage bags, shampoo, toothpaste and other necessities average $20. Transportation costs run about $26 and a cell phone or a fixed line is about $12, not including long distance calls. Entertainment costs average around $265, which includes things like wine at $8 to $20 a bottle. Restaurants entrées are in the $5 to $20 range. A movie is around $5, and a decent apartment rents for $350. Electricity, Internet and cable costs average $70 per month. At the current rate of inflation, you can enjoy a comfortable life in Argentina for around U.S. $900 a month or less, depending on the city.