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Good Economy Raising Food Costs in Panama.

Article Summary:

January’s wage increase is already enough to catapult food prices into the stratosphere in Panama, costing a family an average of $300 a month for basic food items. Analysts argue there are more efficient ways to handle the increase, other than take money out of the workers pocket, such as complying with Article 66 of the Constitution which recognizes that the minimum wage worker must allow the normal needs of the family and be able improve their standard of living. But, That’s not happening right now in Panama with inflation at 5.7%, along side deteriorating wages and reduced quantitatively and the continual erosion of the consumer’s purchasing power.

Photo Credit: Estrategia y Negocios

Original Article Text From Estrategia y Negocios via Google Translate :

To feed in Panama Must Win More than U.S. $ 300

To feed in Panama in a normal way and recover the energy spent must win at least U.S. $ 300 per month which is the actual cost of basic food basket measured in calories.

That means 61.22% of the higher minimum wage that took effect this month, and 171.42% of the lowest, so that a person in this latter situation would be fed with less than two thirds of the products the basket you do not receive grants or other income.

If the coefficient of Orshansky ECLAC estimated that 2.1 for urban areas, the cost of the basic total figure up to $ 630 terrifying, impossible to achieve by those in the current minimum salary range of 175 to 490 dollars a month.

It is unknown how these workers may face rent, transportation and basic services as electricity, water, gas and health care if they are from families with total income of a single minimum wage.

It is understood that in such cases the State for protection through the implementation of social programs, but apparently these are not sufficient and abundant or limited in scope, such as fairs and subsidies jumbo pensioners.

More effective would be, according to several analysts agree as Professor John Jované, comply with Article 66 of the Constitution which recognizes that the minimum wage worker must allow the normal needs of your family and improve their standard of living.

That’s not happening right now in Panama for the reasons outlined which must be added 5.7% inflation deteriorating wages and reduced quantitatively and irreversibly at least this year, your purchasing power.

In the recent discussion to establish the minimum amount and came running from January 1, the parties reached agreements and the government intervened by decree setting up between 15 and 18% of which are derived from the ends 175 and $ 490 already mentioned.

The president, Ricardo Martinelli, today announced the entrepreneurs that the government intercede in the dispute over who should settle from next year between workers and employers. This time the government was wrong with it either did not satisfy either.

However, this wage increase is already enough catapulting prices into the stratosphere and traders announced that the meat will rise 30 cents as rice, beans, eggs and oil.

The Minister of Economy and Finance, Frank De Lima, said that for the first time the price of basic food basket reached $ 300 a month, according to the calculation of November.

December and January will be worse, the first for the classic sales rebound to year, and the second because it is the month that begins to apply the salary increase which is almost always followed by a rise in the Consumer Price Index.

Last October, last month comparison, the basic food basket (caloric) reached a cost of 295.38 dollars, brought to Orshansky coefficient, yielded a total of 620.98 full basket dollars.

There are lots of ways to make these measurements, one of which is the ratio of Orshansky used by CEPAL, which results from dividing the total expenditure between food expenditure for a definition of the poverty line once the basic food basket .

Link to Original Article:

From Estrategia y Negocios

Latin America Investment News on Viva Tropical