According to the report, during the last five years the share of the basic food basket of workers’ income has grown. Indeed, the value of it went from representing 25% of salary in 2016 to 33% in 2021. Even so, The greatest rise in food prices that comprise the concept of the basic basket occurred between 2018 and 2019, and then slowed down between 2020 and 2021.
According to the evolution of the Salary Index and the Consumer Price Index, in recent years the recovery of the purchasing power of salaries has slowed down. In this sense, the ODEP assured that “in order to reach higher levels of economic activity, it is essential that the participation of the basic basket in income decreases.”
Indeed, during the last eight months of 2021, registered wages grew above the rise in food and beverage prices. This data alone marks a milestone, taking into account that, of the last 48 months, this phenomenon occurred only in 19 of them.
7 of 8 food and beverage items had a lower price increase in 2020-2021 compared to the 2018-2019 period. But the improvements in wages in 2021 were insufficient to offset the loss of purchasing power in previous years.
“An effective income and price policy is imperative to recover the purchasing power of wages,” says the ODeP report, also indicating that “Without the recovery of the purchasing power of the population, it will not be possible to consolidate the economic recovery.”
Source: Ambito
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