The economic recovery achieved in 2021 and the activity data so far this year create the conditions in all productive sectors for wages to rise in line with inflation and even above it, according to the perspective defended by sources of the national government when understanding that “there is no margin to delay the purchasing power of the workers”.
“With all the difficulties that can be identified in the last two years, economic activity remains in firm recovery” as reflected today the data for January with a growth of 5.4%, An official source raised this afternoon, after which he reaffirmed that for the Government “salaries must follow at least the line of inflation and if possible be above” in this 2022.
In this sense, it is considered that “There is no room to delay wages, on the contrary, there is room to raise wages in all productive sectors”after the purchasing power of the workers is reduced by 20% during the administration of Mauricio Macri (2015-2019).
Precisely, the inflationary issue is the main concern that the Government has At this time, the spokesman confided, pointing out that the increase in production and employment is being consolidated, but the behavior of prices affects distribution to the detriment of the sectors with fewer resources.
In the current context of global inflationary pressure, the Government seeks to stabilize price movement around 50% this yearadmitted the same source that participates in the so-called economic cabinet, based on “scenarios of agreements” with the different links of the production and marketing chains.
“We bet on dialogue and agreement with the different sectors to avoid inflationary jumps so that when this situation of volatility of commodities due to the conflict in Ukraine is overcome, we can resume a downward trend” in inflation, he explained.
in that frame defended the increase in withholdings from 31% to 33% on soybean meal and oil exports and the creation of a Wheat Stabilizer Fund stating that “there is a redistribution of income where the big winner is the countryside, an increase in profits from the primary sector that we are going to end up paying for all Argentines.”
The Government is particularly concerned about the behavior of food, particularly fresh produce.
This sector “does not have a problem of lack of competition because both in production and marketing it is very atomized, but it is noted that the pandemic has changed habits with greater consumption with an offer that has not grown,” said the source. .
Despite this, the Government will seek work “on the component of expectations that trigger inflation” to which the new macroeconomic scenario contributes with a plan that “provides predictability and seeks to reduce tensions in an otherwise changing scenario.”
In the same way, it is recognized in the light of the last meetings that “the business sector expressed a willingness to agree on measures to avoid an inflationary jump”, and that dialogue is already beginning to be reflected in the gondolas with the retraction of prices as of March 10.
Despite this price pressure, it is noted that “at the moment it has not been acting as an impediment to the arrival of investments and the development of production,” the source concluded.
