The National Statistics Institute (INE) released this Friday the Average Nominal Wage Index (IMSN) accumulated to November which was 9.74%.
This data allows us to anticipate the floor increase that retirees and pensioners will receive next year.
But this time you also have to take into account the 3% advance on account that the Executive Branch granted in July for retirement and pensionsin a context of rising international food and energy prices that had an impact on domestic prices.
Thus, considering that payment already made, the floor adjustment today stands at 6.54%.
With the IMSN for the period between January and November, the retirement adjustment is established, which will apply as of January 2023 and will be received in the February payments.
When the result of the IMSN for the whole year is known next month, that 6.54% floor will have a slight adjustment and the differences in the payment corresponding to February will be re-settled, with which the full increase will be collected in March.
By the end of the year, the median response to the expectations survey of the Central Bank (BCU) expects inflation to be at 8.4%. The official data will be known next week.
In this way, it is probable that pensions will once again gain purchasing power after three consecutive years in which they increased below inflation.
The real wage improved again in November
The purchasing power of wages improved again in November, and in a context of decelerating inflation. As reported by the INE, the Average Wage Index (IMS) advanced 0.17% in November, 9.34% in the accumulated January-November and 9.61% in the last 12 months.
Meanwhile, inflation in the 12 months to November was 8.46%, which is why wages managed to exceed the evolution of prices.
Thus, the Average Real Wage Index advanced 1.1% in the 12 months ending in November, basically due to the 1.4% recovery in the private sector. In the case of the public, the purchasing power dragged a decrease of 0.5% in the last moving year.
The IMS of the private sector advanced 0.19% in November, mainly as a result of the variations in social and health services (1.28%), education (0.07%), transport and storage (0.01%) and hotels and restaurants (0.01%). Meanwhile, in the public sector, the IMS registered a monthly increase of 0.14% and that is explained by the variations of the central government (0.17%), public companies (0.13%) and departmental governments (0.04 %)
