Construction costs in Argentina double

Construction costs in Argentina are reported to have nearly doubled during the last 12 months, in line with high general inflation, putting pressure on the government’s public works plans in an election year.

Buenos Aires, Argentina (Photo: AdobeStock)

Statistics agency Indec says that construction costs in Greater Buenos Aires have increased 6.2% in January month-on-month and 97.9% year-on-year.

Over in Córdoba province, prices rose 94.8% according to the provincial statistics office while Buenos Aires province’s small and medium construction firms association Apymeco said that local prices had jumped 108%.

Bids for public works tenders across the country are reported to have routinely exceeded reference budgets with offers for a recent roadworks tender in San Juan province said to be more than twice as high as the 4.5 billion pesos (US$23 million) budget.

General inflation in Argentina reached 98.8% in the last 12 months ending in January. This is said to have further complicated price control efforts from political parties.