Deteriorated purchasing power strikes the whole labor (Venezuela)

[naaman fletcher]

Deteriorated purchasing power strikes the whole labor
In the private sector, wages diminished 6.3 percent on average
ECONOMY
Not long ago, Venezuelans were able to buy a brand-new motorcycle or a car; cover their basic expenses and enjoy cheap US dollars to travel if holders of a credit card. However, everything has changed. Now, every month, wages purchase less.

The numbers supplied by the Central Bank of Venezuela (BCV) show that prices have spiraled. Only in the first seven months of 2010, there has been an 18-percent hike where wages have been lagged behind.

In real terms, after discounting the effect of inflation, purchasing power of employees in the private sector recoiled by 6.3 percent on average, if comparing the second quarter of this year with the same period in 2009. As for public servants, the reverse points to 10.5 percent.

The driving force of prices comes from a combination of factors, including, first and foremost, devaluation of the local currency in January 2010; upward adjustment of the prices of regulated products to prevent shortage and falling output.

The impact of losing purchasing power is felt virtually in the whole labor scale.

http://english.eluniversal.com/2010/08/16/en_eco_esp_deteriorated-purchas_16A4342331.shtml

Sucks to be a Venezuelan worker these days.