Melody13
Member
With more than 50% inflation accumulated in the last three months, and with the rise of the dollar, the pocket has suffered a hard blow.
The analysis of the economic situation shows a decrease in the purchasing power of salaries in Argentina. It is highlighted that when measuring the RIPTE salary with the CCL exchange rate, it is below the average of the last 10 years. In addition, there was a sharp drop in the salary measured in official dollars due to the exchange rate correction in December, standing at u$s704.5.
Official figures indicate that annual inflation exceeded 212% in 2023, especially impacting those with lower incomes. In December, the wage index was 8.9%, below the 25.5% inflation rate, resulting in a significant decrease in purchasing power.
Registered salaries experienced a monthly drop of 11.5% and a year-on-year drop of 14.8%, while the public sector suffered a real decrease of 15.9% in December and 20.2% year-on-year. On the other hand, the income of the non-registered sector increased by 7.6% monthly and 115.3% year-on-year, although the purchasing power of this sector fell by 30.9% in 2023.
The Minimum, Vital and Mobile Wage was set at $156,000 in December, but this amount was outdated in view of the monthly inflation of 25.5% in December and 20.6% in January.
The relationship between the unions and the Government has been tense since the announcement of the national strike on January 24, 2024, with no rapprochement between both parties so far.
Inflation in Argentina moderated slightly in January, but in the last 12 months has exceeded 250%, one of the highest rates in the world. In January, inflation was 20.6%, down from 25.5% in December, but with a year-on-year rate of 254.2%. Although this represents a slowdown, prices are still at worrying levels.
The items with the highest increases were goods and services, transportation, communication and food and non-alcoholic beverages. The devaluation of the peso in December, price liberalization and tariff adjustments contributed to keep inflation close to the historical record.
The policy of cutting the fiscal deficit has affected economic activity and increased poverty, which exceeds 45%. Although the government claims to protect the most vulnerable, prices continue to rise, affecting access to food and medicines.
The Minister of Economy foresees a decrease in inflation in the coming months. The government seeks to reduce the role of the State and achieve economic stability, although its measures face union resistance and legislative problems.
The Indec established the basic food basket at 285,561 pesos and the total basic basket at 596,823 pesos.
www.ambito.com
The analysis of the economic situation shows a decrease in the purchasing power of salaries in Argentina. It is highlighted that when measuring the RIPTE salary with the CCL exchange rate, it is below the average of the last 10 years. In addition, there was a sharp drop in the salary measured in official dollars due to the exchange rate correction in December, standing at u$s704.5.
Official figures indicate that annual inflation exceeded 212% in 2023, especially impacting those with lower incomes. In December, the wage index was 8.9%, below the 25.5% inflation rate, resulting in a significant decrease in purchasing power.
Registered salaries experienced a monthly drop of 11.5% and a year-on-year drop of 14.8%, while the public sector suffered a real decrease of 15.9% in December and 20.2% year-on-year. On the other hand, the income of the non-registered sector increased by 7.6% monthly and 115.3% year-on-year, although the purchasing power of this sector fell by 30.9% in 2023.
The Minimum, Vital and Mobile Wage was set at $156,000 in December, but this amount was outdated in view of the monthly inflation of 25.5% in December and 20.6% in January.
The relationship between the unions and the Government has been tense since the announcement of the national strike on January 24, 2024, with no rapprochement between both parties so far.
Inflation in Argentina moderated slightly in January, but in the last 12 months has exceeded 250%, one of the highest rates in the world. In January, inflation was 20.6%, down from 25.5% in December, but with a year-on-year rate of 254.2%. Although this represents a slowdown, prices are still at worrying levels.
The items with the highest increases were goods and services, transportation, communication and food and non-alcoholic beverages. The devaluation of the peso in December, price liberalization and tariff adjustments contributed to keep inflation close to the historical record.
The policy of cutting the fiscal deficit has affected economic activity and increased poverty, which exceeds 45%. Although the government claims to protect the most vulnerable, prices continue to rise, affecting access to food and medicines.
The Minister of Economy foresees a decrease in inflation in the coming months. The government seeks to reduce the role of the State and achieve economic stability, although its measures face union resistance and legislative problems.
The Indec established the basic food basket at 285,561 pesos and the total basic basket at 596,823 pesos.
El impacto de la inflación y el dólar sobre el bolsillo: ¿cuánto perdieron los salarios en la era Milei?
Con más de 50% de inflación acumulada en los últimos tres meses, y con la suba del dólar, el bolsillo sufrió un duro golpe.
www.ambito.com
