Wages lost again the race against inflation
Argentina, August 19, 2013
As usual, wages lost again the race against rising prices. According to the latest report of City Bank, nominal wages rose by 24.5% compared to 25.6% annual inflation. In real terms, wages are 1% behind the cost of living.
The City Bank report shows that this year, inflation accelerated again in July, and may climb to 24.9% in annual terms, “after slowing in the second quarter.”
Meanwhile, the CPI of San Luis, recorded in June recorded a rise of 2.3% per month (24.6% annually), surpassing its record of the same month of 2012.
Also informed about the rise in food and beverages, particularly in retail prices: “With a seasonal nature, were also recorded sharp increases in recreation associated with winter break, which totaled rises in housing and basic services, education, transport and health costs.”
In the past two months, prices advanced at an average monthly rate of 2.2%, equivalent to an annualized rate of 31 percent. Retail prices not only regained momentum following the freezing prior provisions Guillermo Moreno, but also accelerated.