The Minimum Vital and Mobile Wage (SMVM) lost in Córdona, in May 2024, 0.83% of purchasing power of the Total Basic Basket (CBT) in relation to April 2024. The work explains that “the power Acquisitive is the ability of people to satisfy their needs. In other words, it refers to the availability of resources for the acquisition of goods and services.”
According to the study released by the Statistics Institute of the Ombudsman of Córdoba, Mario Decara, the SMVM in May 2024 is insufficient for a household to overcome the indigence and poverty lines. It is enough for less than two thirds of the CBA – indigence – and less than one third of the CBT – poverty line -.
In May, the amount set by the National government for the SMVM was $234,315.12. This represented an increase of 6.00% compared to the month of April, when it was established at $221,052.00. But when comparing the evolution of the SMVM with respect to the cost of the CBA (Basic Food Basket), the real impact is less than that percentage.
The CBA for a four-person household in April cost $341,317.89. That same month, the SMVM was able to acquire only 64.76% of the foods that comprise it.
In May the CBA increased 4.03% and cost $355,078.92. The SMVM that month was enough to buy 65.99% of the CBA, which implies a real improvement of only 1.90% in terms of purchasing capacity.
But compared to the Total Basic Basket, which includes other essential expenses in addition to food, it lost purchasing power by -0.83%.
The cost of CBT in May was $788,275.21 and had an increase of 6.92% compared to the previous April, above the monthly increase of the SMVM. In this way, the Minimum Wage continued to lose purchasing power.
In fact, in May the reference salary reached 29.73% of the CBT. This is a little less than in April, when it was able to access 29.98% of it, which represents a decline of -0.83% in terms of the CBT’s purchasing capacity.
Furthermore, INEDEP shows that the evolution of the SMVM continues to lag behind, since in one year it accumulates a 177.26% increase, compared to 303.19% for the CBA and 314.39% for the CBT.
SMVM VERSUS CBA AND CBT BETWEEN 2019 AND 2024
The variation in the cost of food that exists in Argentina can be compared with that of the SMVM to determine the purchasing power that is taken as a minimum reference. Between May 2019 and the same month of 2024, both the CBA and the CBT have increased at a greater rate than the SMVM. The CBA varied positively by 3,056.85%; the CBT 2,714.54%, and the SMVM had a smaller positive variation of 1,774.52%.
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