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Pensions way behind inflation, admits Argentine bureau chief

Thursday, October 11th 2018 - 16:47 UTC
Full article 3 comments
No plans for year-end bonus, according to Basavilbaso, despite inflation. No plans for year-end bonus, according to Basavilbaso, despite inflation.

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.

Categories: Economy, Argentina.

Top Comments

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  • RICO

    That is odd there was no inflation under the last President. It is INDECisvive to claim otherwise.

    Oct 11th, 2018 - 07:11 pm +1
  • bushpilot

    That is not good.

    What is up with this country and inflation? Where does it come from and why haven't they already fixed something that's been screwing them for years?

    Do they flood the market with too much printed money? Do they flood the market with too much borrowed money?

    Do too many people get free “inclusion” subsidies with not enough actually doing anything?

    Oct 11th, 2018 - 10:06 pm 0
  • Enrique Massot

    Ah, the delight of Cambiemos yellow balloons, the broken promises and hypocritical comments as those of Basavilbaso.

    Mauricio Macri's 'best team of the last 50 years' is made up of former employees who were perhaps good while being employed by financial institutions and large corporations.

    However, they don't have a clue about conducting a country's business.

    They came and merged their greed to their little abilities, and the result has been disastrous. With most of their energies used to create good business opportunities for themselves, they had little time for public service.

    The Macri government will go down in history as the team that did the most damage in the shortest period. Their inheritance will be hard to fix.

    Oct 13th, 2018 - 02:53 am -1
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