Argentina's purchasing power plunges to its lowest since the 2001 crisis

[MilHojas]

Purchasing power loss slumps to levels not seen since 2001 crisis

Soaring utility bills and basic shopping-basket prices have eroded the capacity of families to buy everyday goods. Minimum wage has fallen 28% in terms of purchasing power over last 12 months, UBA report finds.

www.batimes.com.ar

 

[LuckyLuke]

Great article. Regardless of all the talk and posturing on inflation, wages, exchange rates and deficits, the only result that ultimately matters is the purchasing power of the ordinary citizen and whether this is improving or deteriorating. The resulting effect of which can be easily seen in the poverty rate below:



It remains to be seen if Milei, much like his predecessor, is capable of actually reversing this trend.

 

[jantango]

 

[Ries]

Everything Milei has done so far has made prices higher. The only lowering of any price I have seen is property values, as many owners are so swamped with increases in utilities and expensas that they are desperate to sell and are taking lower offers.

 

[daveholman]

Well...he certainly got Syria right. lol

 

[LuckyLuke]

Well...he certainly got Syria right. lol

Collapse is an overused word and can be used in many contexts. Regime change like Syria is certainly a collapse of an incumbent government. France's loss of confidence in Macron is a "collapse" of his political coalition. Hyperinflation is a collapse of trust in a currency. But none of these are collapses of societies. The closest modern collapse we can probably see today is Haiti and Palestine. Where dynamic pillars of trade, access to clean food/water, safety, and basic infrastructure and utility services are debilitated.

 

[antipodean]

Argentina tiene uno de los salarios pretendidos en dólares más altos de la región

El promedio es de USD 1.234 al tipo de cambio oficial. La brecha con otros países puede alcanzar el 30%, según un informe privado

www.infobae.com

It seems that Argentina has already regained its spot amongst the top of average wages in Latin America according to this published today.

"According to a report by Bumeran, the average salary (in Argentina) is USD 1,234, while in Chile the average is USD 1,139 per month, in Panama, USD 1,039; Peru, USD 864; and Ecuador, USD 811. Measured in MEP dollars, the average salary sought in Argentina is USD 1,137 per month, also above the regional average. It should be noted that Brazil and Uruguay were not included in the study."

"Meanwhile, Panama and Ecuador are the countries with the greatest wage stability from January 2021 to date. In contrast, Argentina experienced a sharp drop in wages during the last part of 2023, and has shown a recovery in wages in both official dollars and MEP dollars in the second half of 2024 , with the latter having grown the most in the year. However, this recovery is below the accumulated inflation."

The BA Times article and UBA study from the first post is refering to purchasing power versus the minimum wage (which as we know, very few workers en-blanco in Argentina actually earn). It is also worth pointing out that the BA Times articles states that YoY inflation is "currently at an annual 193%" which is largely attributed to the fall in purchasing power while failing to point out that this number is decreasing each month as monthly inflation for most of 2024 is now at the lowest level in years (e.g. in September 2024 the annual inflation was 209%).

 

[pixer12]

Argentina tiene uno de los salarios pretendidos en dólares más altos de la región

El promedio es de USD 1.234 al tipo de cambio oficial. La brecha con otros países puede alcanzar el 30%, según un informe privado

www.infobae.com

It seems that Argentina has already regained its spot amongst the top of average wages in Latin America according to this published today.

"According to a report by Bumeran, the average salary (in Argentina) is USD 1,234, while in Chile the average is USD 1,139 per month, in Panama, USD 1,039; Peru, USD 864; and Ecuador, USD 811. Measured in MEP dollars, the average salary sought in Argentina is USD 1,137 per month, also above the regional average. It should be noted that Brazil and Uruguay were not included in the study."

"Meanwhile, Panama and Ecuador are the countries with the greatest wage stability from January 2021 to date. In contrast, Argentina experienced a sharp drop in wages during the last part of 2023, and has shown a recovery in wages in both official dollars and MEP dollars in the second half of 2024 , with the latter having grown the most in the year. However, this recovery is below the accumulated inflation."

The BA Times article and UBA study from the first post is refering to purchasing power versus the minimum wage (which as we know, very few workers en-blanco in Argentina actually earn). It is also worth pointing out that the BA Times articles states that YoY inflation is "currently at an annual 193%" which is largely attributed to the fall in purchasing power while failing to point out that this number is decreasing each month as monthly inflation for most of 2024 is now at the lowest level in years (e.g. in September 2024 the annual inflation was 209%).

Yeah, I read the Times article only quickly, but it seems the main thrust is that the minimum wage is losing purchasing power and not average incomes. Misleading to not not specify that in the title of the article.

 

[Quilombo]

I saw the following chart online this week (not my own):


Has anyone's salary here risen this much in dollars? I'm certain except for maybe CEOs it generally hasn't.

I saw the Mileistas online celebrating that Argentina (allegedly) has the highest asking wage for new hires now, but this doesn't mean anything. The entire country's average or even minimum wage could be 2K USD a month, but if prices continue increasing the way they have in dollars it doesn't do anyone any good because one's purchasing power is destroyed as basic goods are insane here compared to countries where people actually earn more than a dollar an hour.

 

[LuckyLuke]

but if prices continue increasing the way they have in dollars it doesn't do anyone any good because one's purchasing power is destroyed as basic goods are insane here compared to countries where people actually earn more than a dollar an hour.