Julio Velardepresident of the Central Reserve Bank of Peru, pointed out this Friday, June 2, that if salaries rise very quickly, they tend to block the generation of employment.
In this sense, he recalled that the minimum salary in Peru covers 60% of the average salary, a higher ratio than countries like Chile and Mexico, where it barely exceeds 40%; even at OECD levelsince the rate is also 40% on average in developed economies.
“Apparently compared to the average salary, I would say that our minimum salary is very high (…) Salaries do not rise by decree, otherwise it would be easier to be rich,” he said at a conference organized by inPERU broadcast by RPP.
Velarde maintained that it is not that he is indifferent to poverty, but stressed that compared to other countries, the Peruvian salary is a bit high.
Inflation will not normalize in 2023
The banker anticipates that for this year food prices will ease, but in terms of general inflation, the return to the target range — from 1% to 3% — would no longer occur in the current.
“The rise in prices obviously affected the poorest. More in the urban area than the rural one because in the rural one there is self-consumption. Everything seems to indicate that the price of food is corrected this year (…) In inflation we expect it to be corrected by at least about 3% this year“, held.
It is worth clarifying that a few weeks ago Velarde estimated that the pressure on prices could only be relieved in February 2024.
Source: Larepublica
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