The thing is that, if this agrees with the national numbers – where the Consumer Price Index was 4.2% –, the Santa Fe Government will be able to arrive at the negotiations with the news that the May salary beat – slightly – the inflation, taking into account that the agreed increase in joint ventures was 5% for that month.
“The May agreement implied a 5% increase and there was an inflation of 4.2% at the national level. In April there was a 9% salary increase and an inflation of 8.8%. We are entering months where inflation , by going down, allows salary increases to reverse previous situations and is something favorable,” he had expressed in AIR the Minister of Economy, Pablo Olivares.
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The last joint agreement was quarterly: 9% for April, 5% for May and 4% for June.
Although he clarified: “It is not to uncork, it is a specific data for one month and we know that it must be taken as something provisional until there is permanent stabilization.”
Provincial inflation for May is a complete unknown. In April it was 7.1%, 1.7% lower than the national figure for that month (8.8%). In March, on the contrary, it was 12.3%, 1.3% higher than that of the country (11%).
Collection: the other variable that can impact the joint ventures of Santa Fe
While we still need to know how prices behave during June, it is clear that the three sectors –state, teachers and doctors– they will arrive at the new joint calls with inflation data quite different from that of months ago.
However, we will have to see how the Government progressed in terms of collection, something also important when negotiating with the unions. In this regard, Minister Olivares said that this continues to be lower than the Consumer Price Index.
READ MORE ► Pablo Olivares: how the drop in inflation impacts public salaries in Santa Fe
“Resources are growing below the inflation of previous months,” said the head of Economy, clarifying that each month’s resources move based on the economic activity of the previous month.
“Although last month the resources grew above 4.2% (May inflation), in April the resources grew below March inflation and in March they grew below February inflation,” explained Olivares.
