Wage poverty: the basic basket now costs 60% more than the minimum wage

A recent report by the Institute for Social, Economic, and Political Research ( ISEPCI ) raised new alarms about the economic situation of Argentine households. According to the survey conducted in April, the Basic Food Basket ( CBA ) for a typical family exceeded the Minimum Living Wage ( SMVM ) by 59.4%, and projections indicate that this gap will continue to widen.

The data were presented by Isaac Rudnik, national director of ISEPCI, who explained that the study is based on monthly monitoring of 57 products in local businesses located in working-class neighborhoods of Greater Buenos Aires. "A family of two adults and two children needed $481,349.79 to cover only their basic food needs during April, while the minimum wage was $302,000," he explained.

The disparity between income and prices is exacerbated by the lack of consensus within the Wage Council. At its last meeting, union, business, and government representatives failed to agree on a new minimum wage, leaving the final decision in the hands of the Executive Branch.

In this context, Rudnik noted that "in April alone, the Total Basic Basket (CBT), which includes, in addition to food, other essential goods and services, increased by $32,485.46, 67% more than the entire cumulative increase in the minimum wage until August, which will be $19,400."

Even if both adults in the typical family had registered jobs and earned the minimum wage, they would barely rise above the poverty line. "With a total income of $604,000, they would be covering the value of the food basket, but far from the amount of the CBT, which reached $1,097,477.54. That would leave them below the poverty line," Rudnik warned.

Among the foods surveyed, the sharpest increases were in meats, with average increases of 9.8%. Specifically, roast beef rose 17.14%, ground beef 10.39%, breaded meat 14.15%, and fish 14.29%, further complicating access to quality protein.

Rudnik was blunt about the government's direction: "The inflationary process is far from being on a definitive downward slope. The model based on the dollar's weakness, the fall in domestic consumption, and unrestricted liberalization has not halted the increases. The $5,000 monthly increase in the minimum wage sounds more like a joke than a serious argument for recovering purchasing power."