In this context, the possibility of a sharp drop that leaves the consumer price index below 2021 values is practically ruled out. That is why the Government is analyzing different measures to strengthen income. “In May the first installment of the $18,000 bond is paid, in June the second part, that heats up the economy, pure demand. Thus, we have to promote initiatives every month,” a close collaborator of President Alberto Fernández told Ámbito.
the same source, did not rule out that during the second semesterif inflation continues to check purchasing power, a measure similar to the income reinforcement bonus paid by ANSES is implemented. “It is part of the already traditional menu of our economy. They are the tools we have,” he noted.
Along these lines, he explained that despite the advancement of parity that was arranged weeks ago, The idea of a general increase in a fixed sum that is implemented by decree is not ruled out. “I don’t think the CGT likes it. But once a good number of joint ventures are closed, it can be carried out to push the most lagging unions or the sectors with less bargaining power, ”he explained.
On the other hand, last Friday the president of the Chamber of Deputies, Sergio Massa, made public a request to update the income tax floor. The response from the Minister of Economy, Martín Guzmán, was immediate: “It is obvious that it will be updated,” he told the Télam Agency. The Secretary of Tax Policy of the Ministry of Economy, Roberto Arias, anticipated in radio statements that it will be between June and July As explained from the Massa environment, the floor that today is at $225,937 would rise to $265,000 of gross remuneration.
On May 10, five days after deputy Máximo Kirchner presented a project to bring forward the sections scheduled for the Minimum salary, vital and movil, the Ministry of Labor announced that the improvements scheduled for December will be charged in August. At that time, the increase will reach 45%. As a function of higher inflation, the negotiation at the beginning of the year was outdated, It is likely that the Minister of Labor, Claudio Moroni, will reconvene the Salary Council to bring it to a figure close to 60%as most of the weight guilds are closing.
The question that persists among economists is how much of this effort to restore income will end up being diluted by the acceleration in prices that the same measures can generate. The phenomenon was exhaustively analyzed by former Deputy Minister Emmanuel Alvarez Agis in a report published by his consulting firm PxQ: “The measures try to make wages and income adjust to the new speed of inflation, but if there is no way to controlling prices, responding with wage increases can be counterproductive. In a framework like the current one, nominal gains only remain real for a few months. And this is how the process begins again and inflation is fed back”, concludes the work.
Source: Ambito
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