Former Colombian President Álvaro Uribe, head of the Democratic Center party, proposed this Monday that a one-time premium be paid, workers to compensate for the loss of purchasing power caused by the sharp rise in inflation.
(Duque reiterates call to the Issuer in the face of a rate hike).
Uribe, who was president from 2002 to 2010, explained that the request is due to the fact that inflation in the food sector was 17.23% in the last year and that of January was 3.8%, which “hit purchasing power” of the lower income sectors.
“That is why, on behalf of the Democratic Center, we are asking for a one-time bonus, or a one-time bonus in an amount that compensates for the deterioration that inflation has caused to the good increase in the minimum wage,” Uribe detailed in a press conference in Bogotá.
Uribe recalled that the government of Colombian President Iván Duque, also from the Democratic Centerafter a consensus with workers and employers, increased the minimum wage for this year by 10.07%, but, in his opinion, the rise in the price of food requires an extraordinary mechanism to favor those most in need.
HELP BY CONSENSUS
The former president explained that the amount of this premium must be defined by the National Administrative Department of Statistics (Dane) and that it can be processed through a decree or a law but always based on a consensus, as happened with the increase in the minimum wage.
(This is how food prices have varied in a year).
“It can be by decree, law or agreement. There is great concern among Colombian workers, even businessmen, due to the increase in costs. The acquisition of food has been made difficult”maintained Uribe.
According to Dane, last January the Consumer Price Index (CPI) was 1.67%, the highest for a month in two decades, driven by increases in food prices.
Uribe stressed that the Government has taken measures to curb inflation, such as the suspension of tariffs for more than 100 imported products, and the drop in the prices of agricultural inputs, which, according to what he said, are a “aid to the agricultural sector”or increases in interest rates of the Banco de la República (issuer).
At their most recent meeting, On January 28, the issuer raised the interest rate by 100 basis points, which was set at 4.00%.
(Rice, the staple food that withstood the blow of inflation).
When asked about the reason for his proposal in the middle of the electoral campaign, Uribe said that this could generate suspicion, but he assured that he has made such proposals throughout his political life.
Colombia will go to the polls on March 13 to elect the members of the Senate and the House of Representatives, while the first round of the presidential elections It will take place on May 29 and the Democratic Center will concur with former Minister Óscar Iván Zuluaga as a candidate.
EFE
