Argentina's Pensions Bureau (ANSES) Director Emilio Basavilbaso Wednesday acknowledged that inflation has rapidly outpaced what senior citizens collect monthly.
Basavilbaso spoke about the adjustment formula applied to calculate pensions and acknowledged that until the first months of next year the results will be below the inflation index.
Up until September, inflation was the same as mobility, and this year, unfortunately, inflation is higher than we wanted, said the official, who highlighted the advantage of the calculation being tied to the inflation rate.
However, Basavilbaso anticipated that pension assets will be below projected inflation. The mobility formula is a few months behind inflation figures. At the end of the year there will be a shift from the inflation peak, which rose more than expected, he said and stressed that the trend will begin to reverse early next year.
In the past, pensions were adjusted twice a year. Today, it is so four times a year, Basavilbaso explained. The previous formula was counter-cyclical, he added.
But asked whether the government is considering an end-of-year bonus to compensate for inflation-motivated price hikes, Basavilbaso ruled out such a possibility. We are not anticipating a bonus, he said.