BLOOMBRG/ Factory owner Alberto Sellaro owns a shoe factory in Buenos Aires and said his 50 employees will receive a 24.7% pay rise in two stages over the next nine months. As a result he will increase his prices for the coming season by 10%. “Nobody can give a 25% increase without raising prices. Some suppliers are raising their prices ‘just in case,’ and workers follow those raises too.” Argentines have “lost their bearings” on the rate of price increase. It’s a situation that feeds on itself.” said former Finance Secretary Daniel Marx. “It’s hard to measure how much increases should be to maintain purchasing power.” Price increases have left workers with a loss of purchasing power and government statistics have understated actual inflation by much as 20% say some economists. The official rate is 10.7% per year.
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