Argentina accelerates hike in minimum wage

(Reuters) – Argentina will increase its monthly minimum wage to 45,540 pesos ($389.46) in June and to 47,850 pesos in August, the Ministry of Economy said on Tuesday.

“The increases in (minimum wage) that were scheduled for August and December respectively have been brought forward to safeguard their purchasing power,” the General Work Federation (CGT) said in a statement.

June’s increase is a 16.95% hike in the current wage of 38,940 pesos and comes as strong inflationary pressure hits purchasing power in Argentina.

Argentina’s Consumer Price Index (CPI) is expected to have grown 5.9% in April, largely due to the rise in prices in the ‘Food and Beverages’ and ‘Clothing’ categories, according to a Reuters poll.

($1 = 116.9300 Argentine pesos)

(Reporting by Walter Bianchi; Writing by Carolina Pulice; Editing by Richard Pullin)