Argentina’s Milei has a beef with Netflix star’s complaint about price of empanadas, living costs

BUENOS AIRES – President Javier Milei and his finance chief criticised a globally known Argentine actor for complaining that Argentina’s staple food was overpriced, stirring debate about how expensive the country’s things have become.

Mr Ricardo Darin, 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 (S$54) for a dozen empanadas and questioned Mr Milei’s latest tax measures meant to spur dollar spending. Argentina’s 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 Mr Milei’s policies on pocketbook issues – dominated headlines on May 26, a preview of what’s to come as October midterm elections inch closer. “There’s a lot of people having a very hard time,” Mr Darin said May 24 on Mirtha Legrand’s show. 

“Empanadas aren’t that expensive, Ricardito,” Economy Minister Luis Caputo shot back in a May 25 interview. “People can eat good empanadas for 16,000 pesos,” Mr Caputo told La Nacion. “I’m glad he can eat the most expensive ones.” Mr Milei joined in May 26, posting an artificial intelligence-generated image of Mr 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 Mr Caputo’s estimate, according to data from the municipal government.

Mr Darin defended his remarks on May 26 when asked by a local television station. “Of course there are empanadas of every kind – more expensive, cheaper, depending on the neighbourhood,” he told America TV. “But it’s clear what we’re talking about. Prices are elevated. People know it.” 

The Argentinian President’s measures have forcefully tamed inflation, bringing monthly price hikes down to 2.8 per cent from a peak of 25.5 per cent when he took office. 

But in dollar terms, the peso has strengthened significantly since Mr Milei took office. It was one of the five best-performing currencies around the world in 2024, gaining more than 40 per cent against the US dollar. For locals and foreigners alike that’s also made Argentina home to the world’s second most expensive Big Mac at US$7 (S$9) and Latin America’s priciest cup of coffee (US$3.50).

Mr Milei’s economy will be a dominant ballot question in October’s midterm vote, when Argentines will elect half of the 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 Argentine capital, like the popular pastry, have increased faster than inflation. Empanada prices are up 240 per cent in the city since November 2023, compared with overall consumer price gains of 219 per cent 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 Mr Sebastian Menescaldi, an economist at Buenos Aires-based consultancy EcoGo.

Everything from wheat flour to milk received government subsidies under Mr Milei’s predecessor, Mr Alberto Fernandez, while barriers to meat exports forced down local prices – all of which Argentina’s libertarian President removed. Meanwhile, price increases since he took office have outpaced pay increases by 3.6 per cent, Mr Menescaldi calculated using the national statistics agency. 

“People lost purchasing power,” he said. BLOOMBERG