In November there will be Parliamentary election in the country, which will be strongly conditioned by the record levels of inflation that the country experienced this year, the increase in the cost of financing, as a consequence of the strategy of the Federal Reserve to contain the rise in prices, and the cost of fuel, which have skyrocketed since Russia’s invasion of Ukraine.
“We found that most real wages (adjusted for inflation) of employed workers have failed to keep up with inflation in the last year,” the bank said, adding: “For these workers, the average decline in real wages is just over 8.5%.”
Taken together, these results appear to be the most serious faced by employed workers in the last 25 years. Federal Reserve.
This Friday will be known unemployment data for september. However, this Thursday the numbers of unemployment insurance applications, which were higher than expected, which shows that the labor market is not robust enough. The expectation is now focused on the announcements of the Federal Reserve on the update of the interest rate and the data of inflation in the next week. During the week it was expected that the general trend, both in the US and in the world, was oriented towards a slowdown in the rate of rises, given the warning about the impact they have on economic activity.
The managing director of IMF, Kristalina Georgievanticipated this Thursday that the entity cut growth projections, since the world’s main economies would be affected by lower demand and higher energy prices.
in the almost two years of the Biden administration, inflation has increased by more than 13%according to the economist Peter Earl.
The Consumer’s price indexa measure of the average prices of consumer goods and services, has been soared 8.6% from the second quarter from last year to the same period this year.
“For 53.4% of these workers, in the second quarter of 2022, the average decline in real wage growth was 8.6%” he added.
In the last 25 years, the average salary decrease was 6.5%according to the Dallas Federal Reserve. core inflationwhich excludes volatile food and energy prices, raised about a 10% during the same period.
The last weekthe Department of Commerce published data showing that Basic consumer prices increased by 6.2% in August compared to the same month a year ago.
Source: Ambito
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