Prices rise every month in Argentina and it especially hits retirees, who perceive their assets have been very worn out by inflation and delays in updating.
In advance of the May inflation data, a report prepared by the Public Policy Observatory of the National University of Avellaneda (UNDAV) pointed out that, during the first quarter of the year, said assets, including the bonus, were lower than the index prepared by the National Institute of Statistics and Censuses (INDEC). The Retirement Mobility Law, promoted by the opposition and that seeks its approval in the Senateaims for a recomposition of 41.2%.
“During the era of President Javier Mileithe minimum asset, including bonus, remained at least 10% below the basic adult basket index prepared by the INDEC“, stated the document.
And the decrease in purchasing power as a result of inflation and the lack of updated salaries strongly affects the sectors that have the least and, without a doubt, according to statistics, Retirees are the most affected because their expenses increase month by month more than those of other citizens and the minimum income they receive is $206,000, including the 8.8% increase in June.
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This number is one more irony of today’s Argentina if one takes into account that the Basic Basket for Retireess, prepared by the Ombudsman for the Elderly, reached a value of $685,041 in the last measurement, which dates back to March. This value rose 239% in the last 12 months (March/23 vs. March/24), above the general inflation level for the same month, which was 287.9%.
But the price increase continues its course, although it decelerates slowly, and according to calculations made by Ámbito, the cost of a retiree’s basket will go from being worth $685,000 in March to more than $800,000 in May. This, taking into account that the inflation figure for April was 8.8% and the expected figure for the fifth month of the year is around 5%.
Retirements: a year-on-year drop of 15%
In this context, the UNDAV document maintains that: “After the exponential growth in inflation that occurred since December 2023, retirements were far behind the increase in prices. Under the current regimein June the minimum retirement, including the bonus, will be $276,931which represents a year-on-year drop of 15% in real terms,” says the report carried out by the Buenos Aires university.
Regarding the bill that seeks to modify the calculation of retirement mobility, which already has half a sanction in Deputies and seeks approval in the Senate of the Nation, the Public Policy Observatory assures that the initiative promoted by the opposition “seeks to guarantee that the minimum income always covers the cost of the Basic Basket of an adult“.
If the legislation is approved, which the president anticipated he would veto, the minimum asset would go from $206,931 to $291,133, without taking into account the reinforcement bonus. “This implies strengthening the remuneration base of retirements and exceeding the cost of the Basic Basket per Adult“explains the dossier.
Source: Ambito
