Pensions and pensions: with December inflation data and January projection, how much would the wage loss be in two months

With official inflation data for December of 25.5% and a price increase expected for January of 25%, according to analysts and consultants according to the REM (Survey of Market Expectations reported by the Central Bank), Pensions and pensions will worsen by 23% in just 2 months, with the aggravating circumstance that the lowest salaries have stopped receiving VAT refunds up to $18,800.

The cumulative increase in prices from December to January would be 56.9% and last month The increase in salaries was 20.87%. They remained unchanged in January and there are no details on what might happen in February.

This sharp deterioration adds to that of recent years. Finally, with the inflationary leap in December, during 2023, pensioners and pensioners had a loss of between 14.2% – in the case of those who have received the minimum wage bonus- and 32.3% for medium and high salaries.

In this way, between September 2017 and December 2023, The average pension deterioration is 40%with a drop in minimum wages by 30% and average and upper wages by 55%.

Official numbers indicate that, as of December 2022, the minimum salary was $50,124 plus a $10,000 bonus ($60,124 total) and in December they collected a minimum of $105,713, plus $55,000 ($160,713). This represents an increase of 167.3%. Meanwhile, annual inflation was 211.4%. Represents a loss of 14.2%

The $55,000 bonus was held in January, so total income remains at $160,713, when inflation could be as high as 55% in those two months.

Those who did not collect the bonuses during 2023 had an increase of 110.9% compared to an inflation of 211.4%. It represents a decline of 32.3% in just 12 months. If we add January inflation, the drop could be around 40% or more.

These losses are added to those of recent years: this process involves several phases:

• Between September 2017 (basis adopted due to the change in mobility during the government of Mauricio Macri) and December 2019, pensions and pensions and other social benefits had a worsening of 19.5% in relation to inflation.

• In 2020, already with Alberto Fernández, with increases differentiated by decree of pensions and pensions they increased between 35.3% and 24.3% against an inflation of 36.1%.

• In 2021with inflation of 50.9%, from end to end the increases were 52.7%.

• In 2022the mobility formula was equal to 72.5% compared to an annual inflation of 94.8%. A loss of 11.5%.

• In 2023mobility was 110.9% and inflation was 211.4%. A loss of 32.3%.