The official strategy is oriented to dose adjustments with the dual purpose of not affect the recomposition of real wages and at the same time continue with the process of reducing inflation.
INDEC measurements have been showing a recovery in purchasing power in recent months.
The national government has ordered that electricity and gas rates will have a 4% increase for the month of August, according to a high official source who spoke to Ámbito. While, fuels will increase by 2.5%.
In this way, the official strategy is oriented to dose adjustments with the dual purpose of not affect the recomposition of real wages and at the same time continue with the process of reducing inflation.
INDEC measurements have been showing a recovery of purchasing power in recent months. The data for May show a Monthly salary variation of 8.3%above the increase in inflation, which was 4.2%. However, in the year-on-year comparison, wages rose by 216% against a rise in the price index of 276%, which shows a fall in real terms of wages of 16% when compared to May 2023.
Given the weight of consumption, it is considered that The restoration of purchasing power is the key element in order to stop the decline in economic activity and begin a recovery process..
On the other hand, the high-frequency indicators managed by private consulting firms show that in recent weeks the process of price deceleration has been seen stressed, among other factors due to the rise in financial dollars.
With this limited increase in rates, it is interpreted that the The Government continues to give a signal that it maintains its objective of inflation converging to 2% per month.
It should be noted that, according to private studies, public service rates are far from covering costs. On average, 40% of electricity, 32% of gas and 94% of water are paid. according to a study by Ecolatina.
This distribution is not uniform, since high-income sectors pay values close to the rate that covers costs, while lower-income segments pay “significantly less than what should be paid.”
It should be noted that the Government has decided not to increase electricity and gas rates in July, taking into account seasonality (i.e. increased consumption in winter), according to official sources.
Source: Ambito
