31.7% Inflation in Argentina and Real Exchange Rate 93 Make It Costlier Than Brazil for Argentines

The 12-month accumulated inflation was 31.7% in Argentina (CPI, INDEC) and 4.64% in Brazil (IPCA, Central Bank). The bilateral Argentina-Brazil real exchange rate index, calculated by the Central Bank of Argentina (BCRA) with a 2015 = 100 base, stands at 93 (data as of 01-28-2026).

Inflation is the general rise in consumer prices; real exchange rate measures a country's currency purchasing power relative to another’s, adjusted for inflation. A value below 100 indicates that the peso is strong in real terms, i.e., the peso’s purchasing power has increased against the real.

Even with very high Argentine inflation, the real appreciation of the peso made prices in reais and dollars higher in Argentina. The result: Argentines have started crossing the border to shop in Foz do Iguaçu (Brazil) and Ciudad del Este (Paraguay), where products are cheaper in the local currency.

This flow reversal does not mean buying in Argentina is advantageous; on the contrary, a strong peso makes purchases there more expensive for those coming with reais or dollars.

What this means for you: if you are Argentine, it’s worth planning purchases in Foz or Ciudad del Este, as prices there will be lower compared to what you would pay in Argentina. If you are Brazilian, expect more Argentines in border stores, which may cause lines and higher traffic, but also negotiation opportunities.

Read also: Where to exchange money at the border and where the real is accepted