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ECONOMY | 06-03-2024 14:33

Wages have plunged 18% during Milei’s first 50 days in office, says economist

During the first 50 days of Javier Milei’s government, wages experienced a real fall of 18%, says a new report.

During the first 50 days of Javier Milei’s government, wages experienced a real fall of 18 percent, not accounting for inflation, says a new report.

The RIPTE Average Taxable Income of Steady Workers in January was 555,269 pesos for a household of two adults, two children – a 14.7-percent monthly nominal rise compared to January, said economist Salvador Vitelli. This means a 22.2-percent real fall year-to year and five percent as against December 2023, he added.

According to the professional's calculation, during the December-January period the real fall of wages was 18 percent.   

“In constant currency terms, it means going back to salaries in May 2005. It’s the biggest year-to-year fall since March 2003" after the end of the dollar-peso parity, Vitelli stated.

The average income of 555,269 pesos is below the poverty line since, according to the INDEC national statistics bureau, which in January said a standard family needed 596,823 pesos to cover basic necessities.

In December, inflation was 25.5 percent and in January it slowed down to 20.4 percent, which pierced through workers’ income.

This loss of purchasing power has impacted consumption levels. The last data from the CAME Argentine Confederation of Medium-Sized Enterprises showed that in February sales at SMEs/PyMES dove by 25 percent.

Inflation for March is expected to be 15 percent and collective bargaining talks might partly improve wage levels, said Vitelli.

 

– TIMES/PERFIL/NA

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