This Monday the economy minister and candidate of Union for the Fatherland, Sergio Massaapplied a sharp devaluation of the official exchange rate of 22%which led the wholesale dollar to $ 350 and that it will have a direct effect on the prices of the rest of the economy, by making a large number of imported inputs and products more expensive, as well as food and other products from the family basket that are exported and that will update their internal price.
In julio monthly inflation was 6,3 % and thus reached a cumulative of the last twelve months of 113,4 %accelerating again compared to June and without counting the devaluation effect of this Monday, however, it was affected by the acceleration of the rhythm of the daily mini-devaluations (“crawling peg”) and the big rates for meet IMF requirements. Also in July, the rise in certain imported products affected the inflation data due to the new “agro dollar” and “corn dollar” and the collection of the PAIS tax.
In this way, with the data for July, there are already more than six consecutive months with three-digit annual inflation.
But in AugustAdded to this overheating of prices is the impact of the post-election devaluation PASO carried out by Minister Massa in agreement with the IMF. The Private consultancies calculate an inflation of between 10 and 14% for August and could reach 20% in September. In that case, It would be the first time in 21 years that the price rise has passed double digits in a month.
From the EcoGo consultantSebastián Menescaldi explained that they expect “inflation of 13% in August and September. The accumulated inflation to October could reach 160% and annual inflation can start at 200%.”
For her part, economist María Castiglioni, from the consultant C&T Advisors, indicated that “the data from our price survey to date show a notable weekly rise of 4% in food, with meat growing almost 7%. In the comparison against the same week in July, the rise is 9% for the total CPI and 11% for food. Since the jump in the official exchange rate takes place in the middle of the month, its effects will be spread between August and September, with August inflation close to 9%”.
In the LCG consultantGuido Lorenzo stated that “with this 22% jolt of the dollar, on an inertia of 10%, if half of that devaluation passes to prices, you can have a month with an inflation of 15%, calmly.”
“We are entering a very complicated scenario, with an inflation rate that is accelerating, and that very probably will enter the field in double digits per month,” said Gabriel Caamaño, from the consultancy ledesma.
Reject the adjustment and defend the salary
Inflation pulverizes real wages and the income of the working class, especially the lower-income sectors, and the informal busy whose buying power lost more than 42% from the macrismo and with the government of the Frente de Todos.
Front of devaluation that is applauded by big business and the IMF and whose consequences are paid by the working majority, it is necessary to organize the workers in each workplace and call assemblies to demand and impose a strike and a plan of struggle to defend wages on the leaderships of the CGT and the CTA of all employed, formal and informal, and of retirees and those who receive social assistance.
We must face the ongoing attack with the same flag, uniting the different sectors that are trying to fragment from above. A common fight where the employed workers and their organizations come together together with the social and unemployed movements.
The defense of salary is of the first order. Measures of another kind are needed to combat inflation, and emergency measures an increase to recover the lost for retirees, employed and social programs. Let no one earn less than what one costs basic basket, currently at $232,427on the way to achieving a minimum wage equal to the family basket that the INDEC workers calculated in $363.570.