In the context of the economic recovery promoted by President Javier Milei, 2024 is shaping up to be a key year for the improvement of Argentine workers' real wages.
After the change of government, Milei's administration implemented policies that managed to reduce inflation and sustain a steady wage growth, allowing millions of workers to recover the purchasing power lost due to Kirchnerism.
The accumulated results up to August show a huge relief for the working class, which had seen its consumption capacity affected by the inflation of previous years.
According to the National Institute of Statistics and Census (INDEC), salaries in Argentina increased by 5.7% in August, the fifth consecutive month of real increase.
This income recovery is accompanied by a deceleration in inflationary indexes, with monthly inflation in August of 4.2%.
Since the beginning of the year, accumulated wage growth reached 109.3%, while accumulated inflation in the same period was 94.8%, which translates into a real wage growth of 14.5% up to August. These figures reflect a remarkable progress in the family economy of millions of Argentines and mark a recovery trend after several years of loss of purchasing power.
In the context of inflation, which has historically been a central problem in the Argentine economy, the first months of 2024 showed a critical scenario, with an alarming inflationary index of 20.6% in January.
However, from February onwards, thanks to the fiscal and monetary policies implemented by the Milei administration, a significant slowdown in price increases was achieved.
Inflation fell to 13.2% in February, 11% in March and 8.8% in April. In the following months, monthly rates fell even further: May recorded inflation of 4.2%, June 4.6%, and in July inflation was 4%, and 4.2% in August.
Milei's economic measures, which included a huge reduction in public spending, deregulation of the economy, elimination of the fiscal deficit and zero emission, were fundamental to the fall in inflation and to ensure stability to make economic recovery possible.
The impact of these policies has not only been felt in formal sector wages. Wages in the unregistered private sector, historically one of the most affected by inflation and instability, grew by 10.6% in August, standing out as one of the segments with the highest increase in the recent period.
Another highlight of Milei's administration was the implementation of an automatic updating formula for pensions and retirement pensions, which adjusts these incomes monthly according to the Consumer Price Index (CPI) calculated by INDEC.
This measure ensures that retirees and pensioners maintain their purchasing power in the face of inflation, benefiting the most vulnerable sectors of society and reducing the risk of poverty in this group.
This measure ensures that wage increases also benefit retirees, reflecting the Milei government's commitment to economic recovery in all sectors.
With sustained wage growth and inflation continuing to decline, the Milei government is focused on consolidating these gains in the coming months.
Recent economic data show that, if current trends continue, workers' purchasing power will continue to increase, and poverty and indigence rates will be progressively reduced.
The stability achieved in these months is an indication that the Argentine economy is in the process of recovery after years of crisis. This achievement of the Milei government not only improves the quality of life of millions of people, but also lays the foundation for a more stable and competitive economy, attracting new investments and fostering sustained growth in the country.