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He began with an economic analysis of the country, referring to government claims that wages are outpacing inflation, stating: “Regarding this, some things may be true, but what is a fallacy is that the adjustment is being borne by the elite when retirees are the ones facing these adjustments,” he criticized.
In this context, he continued: “Especially if we look at the main prices of medications used by retirees from September of last year to September of this year, there have been increases of almost three hundred percent,” adding that: “Not only that, but the seventy thousand peso bonus is being frozen until December, and that will remain frozen,” the interviewee acknowledged.
He also noted: “This creates a loss of purchasing power for the bonus, which was intended to keep up with inflation, and if the increases continue, the bonus loses its purchasing power; the adjustment directly affects retirees.”
The Adjustment in Society
Expressing his view on social adjustments, Banga stated: “This is similar to purchasing power; if there are no greater income increases, the adjustment will be proportional to how much income one has.” He suggested: “You may not rent, but you still have to pay for electricity and gas, which have seen increased rates, yet wages haven’t increased.”
“If you were already barely making ends meet, you are forced to stop doing certain things because, with rising costs and stagnant salaries, you need to save more for bills; everyone has had to cut back in some way,” he explained.
Clarifying further, he added: “Unless incomes have increased, but that is true for the AFA, which has a salary relationship,” now: “If you have a business activity.”
“The Indec conducted a survey on supermarket sales,” and the reality is: “there is a drop in consumption; in most sectors, there is a decline,” which means: “People are not buying because they have cut back on some type of spending.” Merchants in the surveys state: “I can’t expand my business because people aren’t buying,” he emphasized.
In this line, Darío Banga added: “When the wholesaler sees a drop in sales, it means the retailer isn’t buying from them. Sales are the major problem.” Then there is: “The second stage, which is labor taxes, and the third stage, the cost of financing, when interest rates are high for an entrepreneur to take out a loan,” he stressed.
“The key point,” he continued: “is that more than fifty percent of the respondents in the surveys reported a decline in demand.”
Inflation
In concluding the interview, economist Darío Banga discussed how inflation impacts consumption: “The average per capita consumption of meat over thirty-four years for Argentines was sixty-point-two kilograms per person,” but in 2024 it is projected to be forty-four-point-eight kilograms per year. He noted: “This is the lowest average in history based on statistical data on meat consumption,” he pointed out.
“In December, the price of meat rose by forty-point-nine percent due to devaluation; in January, it was nineteen-point-two percent; in February, it decreased by four-point-three percent, eleven percent in March, and in September, it reached zero-point-six percent, showing a declining trend.”
“If we analyze the average meat consumption from September 2023 to September 2024, the price of meat increased by one hundred fifty-one percent, but not everyone’s salary increased. Although meat consumption is low, salaries are also lagging behind,” he concluded.
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