According to media reports, with Argentina inflation out of control, some people in the country actually held a funeral for wages on the streets of Buenos Aires to show their dissatisfaction and protest against the government.
On the 19th local time, a special funeral procession appeared on the streets of the Argentine capital. Some women wore black mourning clothes and flower crowns with the words "RIP Minimum Wage" on their heads, while others carried a huge coffin. And such a scene is not to mourn a person, but to "mourn" the "death" of wages.
At the symbolic funeral, some pulled banners that read "Salary is dead" and others carried a "clinical history" of wages in Argentina - a chart showing how inflation eats up the value of wages step by step. The parade traveled through the main streets of the Argentine capital and ended in front of the presidential palace.
"Today we held a symbolic funeral for wages, and I have to say that this expresses the plight of all workers in Argentina." One protester said.
Argentina's inflation rate may rise to 90% by the end of the year
Although much of the world has been struggling with high inflation this year, Argentina's predicament is particularly severe. The latest data shows that Argentina’s inflation in July increased by 71% year-on-year, about the highest level in 30 years, and increased by 7.4% month-on-month, a new high in 20 years.
What’s even more frightening is that by the end of this year, Argentina’s inflation rate is expected to reach 90%, which will seriously weaken people’s purchasing power. In the official market, the Argentine peso has lost 37% of its value against the U.S. dollar over the past year.
Data from Argentina’s National Institute of Statistics shows that the country’s official monthly minimum wage is 45,540 Argentine pesos (approximately $334), while a family of four consisting of two adults and two children has basic monthly food expenses. That’s 111,298 pesos ($817), more than twice the minimum wage.
On Thursday (August 11) local time, Argentina’s Central Bank announced that it would raise its benchmark interest rate from 60% to 69.5%. The rate hike would reach 950 basis points, which is the bank’s largest increase in the past three years. This is the eighth time the bank has raised its benchmark interest rate this year.
30 days to replace two economic ministers
On the afternoon of July 28, local time, Argentine President Fernandez decided to merge the existing three departments of the Ministry of Economy, the Ministry of Production and Development, and the Ministry of Agriculture, Animal Husbandry and Fisheries into a joint economic department, and A series of personnel changes were announced for cabinet members, with current President of the Argentine Chamber of Deputies Sergio Massa taking over as Minister of Economy.
On the same day, former Economy Minister Patakis expressed the idea of resigning in a meeting with the president. Fernandez accepted and invited her to continue to serve in the government.
Batakis was in office for only 24 days. She succeeded Guzman as Minister of Economy on July 3. On July 2, Guzman published a resignation letter written to the president on his personal social account, officially resigning as Argentina's Minister of Economy. People familiar with the matter said Guzman resigned due to what he saw as a lack of political support for his agenda.
Massa, a lawyer by training, ran for president in 2015. On August 3, local time, Massa was officially sworn in and became Argentina's third economic minister within a month.
(Comprehensive Financial Associated Press, Shenzhen Business Daily, Wall Street News) Editor: Zheng Chuqiao
