The combination ofto inflation in food, the increase in Total Basic Basketthe decrease in workers’ income and the insufficiency of social programs and pensions to cover basic needs are behind the increase in poverty and destitution in it first semester of 2023.
Likewise, the problem of lregistered workers in the private sector who could be at risk of falling into lto poverty despite having a job.
According to official data, the incidence of poverty in 31 urban agglomerations in the first half of 2023 accelerated at 40.1%. This implied an increase of 3.6 percentage points (pp), from the 36.5% that the index marked in the same period of 2022, but What is behind the alarming data?
According to a report from Center for Argentine Political Economy (CEPA), the evolution of poverty and indigence in the first half of 2023 is explained by the following factors.
Food inflation:
Food inflation in the first half of 2023 (7.7%) exceeded that of the first half of 2022 (5.8%) by almost 2 percentage points. This increase affects the levels of the food basketwhich in turn impacts the incidence rate of homelessness and poverty.
Evolution of the poverty and indigence line:
The Total Basic Basket (CBT) increased by 5.6% in real terms during the first half of 2023 compared to the previous equivalent semester. This increase in CBT, which includes food and other basic goods and servicess, contributes to the increase in poverty and indigence.
Workers’ income:
Workers’ incomeespecially unregistered ones, decreased during the first half of 2023 compared to the previous year. This includes a decrease in the salary of unregistered employment and a retraction of the vital and mobile minimum wagewhich affects the population with lower incomes.
Social programs and minimum retirement:
A reduction in the real value of the Universal Child Allowance (AUH) and an improvement in the minimum retirement, although the latter shows a retraction compared to the immediately previous semester. These factors influence family income andu capacity to cover the basic basket.
Poor workers: what the document says about this phenomenon
Regarding poor workers, the document indicates that the median salary in the private sector is is below the poverty linewhich means that half of the registered private workers They do not have enough income to cover their basic needs.
It is necessary to remember that, Before October 22, the day of the general elections, the Minister of Economy, Sergio Massa, will have to face other Consumer Price Index (CPI) corresponding to September, which will be affected by the rise in the official exchange rate. Private consulting firms estimate that it could be between 11% and 13%.
Source: Ambito
