Understanding Yerba Mate Price Reductions in Argentina: Evidence from Weekly Online Prices

Yerba mate is one of the most widely consumed infusions in South America and is an important food product in Argentina. This study analyzes the factors associated with reductions in online yerba mate prices in Argentina between 2015 and 2026. A database of 27,046 weekly price records, organized into 762 product–store series, is used. Price reductions, identified relative to the previous observation, occur in 5.1% of the records, and their probability is analyzed through logit models including product characteristics, macroeconomic variables, temporal controls, and store and product fixed effects. Yerba mate with sticks is associated with a 4.27 percentage point higher probability of price reduction, whereas products labeled as special selection and those sold in bilaminated or flexible packages show a lower probability. The contemporaneous change in the official exchange rate is negatively associated with price reductions, while some of its lags are positive. Fuel price increases in previous weeks are mainly associated with fewer price reductions. Significant differences are also found across years, months and weeks of the month, and during the COVID-19 lockdown. These findings provide evidence on the factors associated with retail price reductions in a food market characterized by persistent inflation.