MARKETS AND CONSUMPTION The announced increase does not raise the purchasing power of the population
High prices of goods consumed the salary increase
The basket including food, housing, education and clothing has a minimum cost of 1,836 Bolivars
Even without going into effect, an increase of 10% of salary lost at least the desired effect of raising the purchasing power of the population. Although the Government argues that the strong bolivar 879.12 start earning 2.63 million people as of 1 May this year, is the highest salaries in Latin America, the rise in prices of goods and services consumed the increase.
Inflation in the last 12 months is 28.80% and increased emuneración Government for not less than 20%, and in 2 parts, so that the effect of the increase is less if one takes into account that monthly rise in food prices, housing, transportation, insurance, medical services, medicines, clothing and footwear, education and other commitments. Some consumers said that increased that will generate an inflationary effect, besides increasing the rate of value added tax of 9% to 12%. "The problem is that when wages go up immediately picks up the price of food, housing and nearly all services, so the salary ends up becoming salt and water. In addition, consumers pay more for everything, always raise the VAT and the tax unit, "said Xiomara Joves.
Maru Díaz, a retired Venezuelan Social Security Institute, said that while also receive a 10% increase when the market is simply not enough money. "At home we spend a month or about 2,500 Bolivars food for 8 people, some are retired and some work, but it is difficult to complete to cover all expenses such as utilities, "he added.
Less purchasing power. Riutort Mathias, representing the Institute of Economic and Social Research Catholic University Andrés Bello, said that inflation, calculated between May 2008 and April 2009 reached 30%, the new wage in real terms, will be 676.24 bolivars.
"This means that in May 2009 with the new minimum wage can buy only 85% of what was bought in May 2008. In other words, everyone who receives base salary will experience a loss of approximately 15% in purchasing power. The increase of 10% only contributes to the loss is greater, "he said.
Riutort added that if he had not given this increase, the minimum wage a family would buy 77% of assets acquired in May 2008, when the wage was 799.23 bolivars. In this case the loss of purchasing power would be 23%.
Another reason why the salary is not enough, is that the cost of the consumption basket far exceeds the monthly salary of the average worker.
Professor the UCAB said to analyze how a family spends on average per month, doubling the cost of the basket of INE in February was 918.02 (includes food which needs an average family of 5 persons). In this way, he added, a minimum consumption basket consisting of basic food, housing payments, clothing and footwear and other commitments is estimated at 1,836 Bolivars per month. Assuming a 2% monthly increase in prices of goods and services in March, April and May this year, the value of this basket could come in May 1948 bolivars.
"If this were so, the new salary to achieve strong bolivar 879.12 buy only 45% of the basket, "said Riutort. While in May the same basket of goods cost bolivars 1484.56 and the minimum wage was strong bolivar 799.223, a consumer purchased during that period, 54% of amount of these products.
Other agencies, such as Cenda, note that only food a family must spend 1,595 Bolivars per month by adding basic services in excess of 3,224 Bolivars per month.
