Asunción, IP Agency.- The minister of Economy, Carlos Fernández, indicated that there is an important variation in recent years between the food basket and the food basket plus household services and expenses. There are proposals to “rethink the appropriate basket for the minimum wage adjustment.”
As of March of this year, food prices and the “total basket” used by the Central Bank of Paraguay (BPC) registered a 15%difference, the minister explained to National Radio.
In general, food prices maintained an evolution similar to the prices of products measured by the consumer price index (CPI) of the BCP. However, from 2021 a variation is observed that this year expressed in 15% more in food prices compared to what is measured by the CPI.
The calculation of the CPI is useful for monetary policy and inflation measurement, said the minister. From the Ministry of Economy and Finance (MEF), “a new basket based on the consumption pattern of the person who earns minimum wage” is proposed.
Fernández said that this idea was already presented to workers’ guilds and it will be necessary to redesign this basket and establish a table between businessmen, workers and government authorities to reach an agreement.
Minimum salary calculation
At present, the consumer price index (CPI) and its interannual variation in June of each year are used.
Since 2017 it was agreed that the minimum wage adjusts based on the CPI, which led to an average of 4.6% variation in the last seven years.
The last readjustment occurred in June last year with an increase of 4.4% in line with the variation of the CPI recorded between June 2023 and May 2024. The minimum wage in force in Paraguay is G. 2,798,309 and G. 107.627 as a minimum wage.
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