In July, inflation doubled the rise in wages

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In July, inflation doubled the rise in wages

Wages lost in July against prices. Photo: EFE / Juan Ignacio Roncoroni

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In July, inflation comfortably beat income: the price index rose about 8%, while wages increased by 3.5%. These private projections confirm a scenario feared by the government: 2022 will close with the pockets that will lose the race to recompose.

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Already in June wages have fallen behind: That month, wages rose an average of 4.8%, while the consumer price index rose 5.3%, according to INDEC.

“After the 1.1% rebalancing in May, the general level of wages showed up a real drop of 0.4%“, says the consulting firm LCG.

In June, the unregistered private sector was the hardest hit, with a real drop of 0.7%. Like this the gap continues to widen with registered private individuals showing a real loss of 0.2%. For their part, public sector employees also fell by 0.7%.

In annual terms, “wages recorded an increase of 67.7%, translated into an improvement in purchasing power of 2.3%, the most important in the last five months. June is the eighth month in which there is a real positive annual change“, highlights LCG.

The informals are the most affected

In any case, this annual improvement was not felt by all sectors: public employees recorded an increase of 5.4% in real terms and the registered private sector recorded an increase of 2.7%, while employees Informal businesses suffered a loss of 3.5%.

“Due to the marked acceleration of the general price level observed, any adjustment derived from parity so far can hardly end up compensating for the loss of purchasing power “, advises the consultant.

The ACM consultant states that “so far this year we can see a 1.3% drop in real wages0.3% for the registered sector and 6.1% for the unregistered private sector “.

“In July with the acceleration of inflation, several sectors are likely to be below monthly inflation “, ACM points out.

Inflation in July

This afternoon the INDEC will release last month’s inflation data. private estimates they place it between 7 and 8%. LCG’s projection for July inflation is 8%. With the parity closed with an increase of about 3.5%, they calculate a real loss of 4% per month.

Moving forward, the situation does not improve. “With an expected minimum inflation of 90% in December, it is difficult to propose a scenario in which wages win the race against rising prices, “says LCG.

According to what they claim so far, most of the established peers an average increase of 67% per year. “We can await the outcome of the new negotiations that will try to get closer to the new price level. In view of a meeting called by the executive power to align prices and wages, new resolutions should advance in that direction, but not a significant recomposition”, they scroll. .

They promote a bonus for lower wages

“We want wages to beat inflation,” President Alberto Fernández e released days ago expected that businessmen and trade unionists will meet to align prices and wages for 60 days.

Despite presidential optimism, on the economic team they are content with more realistic results. “We want salaries to match inflation this year “they were sincere in the Palacio de Hacienda.

With this in mind Sergio Massa analyzes the granting of a fixed sum to workers who receive a salary between $ 50,000 and $ 150,000. The topic is not closed yet, because the CGT opposed the link and instead they asked for the reopening of parity to be guaranteed.


Source: Clarin

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