In mid-March, as he led an act to inaugurate a train station in Tortuguitas, at a time when the ruling party’s main goal was for Congress to finish approving the IMF deal, a key factor in the internal fracture of the Everyone’s Front, President Alberto Fernández promised that the “war against inflation” would begin.
But the truth is that, beyond slight variations up or down, prices and rates continue to be the central axis of government and supply between Minister Martín Guzmán and his detractors, as witness the recent resignation of Roberto Feletti as Secretary of Internal Trade.
In this context of stifling indices (in the first quarter of 2022, inflation has accumulated a rise of 23.1%), parities often lagging behind, attempts at decompression such as the evolution of income, the prices of essential services for all (such as gasoline and electricity) and other immobile for some (prepaid drugs, domestic workers or TV streaming), will explode in June and will again impact the consumer price index which will close the first half.
What increases come in June?
According to what was agreed between the Economy and the IMF, electricity tariffs will increase in line with the evolution of wages in 2021, which was lower than inflation. After the public hearings for the “tariff adaptation” of the electricity service in the Metropolitan Area of Buenos Aires (AMBA) held in May, the Ministry of Energy formalized the new tariffs for residential users:
16.52% since June for those who do not have a social rate, which is added to the 20% in force since March.
6.88% for those who benefit from a social tariff.
According to estimates by technicians from the Energy Secretariat, the average final bill will rise from $1,610 to $1,876 for a user without a social rate, and from $843 to $901 with a social rate.
After public hearings, the Ministry of Energy has set a 21.5% increase for June for residential users of natural gas via networks that do not have a social tariff and are not part of the 10% users with the highest purchasing power.
An increase of 21.3% has already been applied to users with a social tariff in March, which will be the only one of the year, according to the Minister of Economy, Martín Guzmán. In the meantime, for those who do not receive the social rate, but who cannot afford the full cost of the rates, the increase for the whole of 2022 will be 42.7% and must not exceed 80% of the coefficient of salary variation 2021.
The government has allowed prepaid drug companies to apply a 10% increase to their bills since June. In 2022, private healthcare prices have already increased by 9% in January, 6% in March, 6% in April. After 10% in June, they will increase by 4% in July.
According to official provisions, prepaid and social works must increase the fees they pay to clinics, sanatoria, private hospitals and medical professionals for the months of May, June and July by at least 90% of the percentage increase their income through prepaid medical expenses or joint union negotiations for each period considered.
With these new values, the cost of an average prepaid medical plan will be around $35,000, a sector that has 5.5 million beneficiaries, of which one and a half million per option and the rest comes from the transfer of social works.
Private house staff
Those employed in the Casas Particulares will receive a 15% increase in their income in June, which will be added to the 6% in April and the 9% in May, according to what has been agreed in parity (30% for the first semester of 2022).
In addition, a supplement per unfavorable area applies, equivalent to 30% of the minimum wage established for each category, for those who provide tasks in the provinces of Tierra del Fuego, Santa Cruz, Chubut, Neuquén, Río Negro, La Pampa and the Fiesta of Buenos Aires by Carmen de Patagones.
Here’s how salaries have remained since June:
- General duties (cleaning, washing, ironing, maintenance, meal preparation and cooking) will charge $362.50 per hour and $44,517.50 per month.
- Help and care for people (children and the elderly) will receive $390.50 per hour and $49,503 per month.
- Owners will receive $390.50 per hour and $49,503 per month;
- Specific tasks (eg cooks) will charge $414 per hour and $50,738 per month.
- Supervisors will be paid $437.50 per hour and $54,612.50 per month.
While the new rental law is being debated these days in Congress, tenants must pay increases of 54% for those who signed the contract in May 2021, according to the evolution of the location index published by the Central Bank of the Argentine Republic.
The most used TV streaming platform in Argentina will increase the price of its subscriptions in Argentina by up to 27.6% from June 25, 2022.
- The basic subscription, which lets you watch movies and series in SD quality on a single device, will cost $429 (was $376), plus $274.56 for Argentinian taxes; Total: $703.56.
- The standard, which allows viewing on two devices and HD quality, will cost $799 (was $639), plus $511.36 in taxes, for a total of $1,310.36.
- The Premium, with which you can watch up to 4 devices simultaneously and in Ultra HD quality, costs $1,199 (was $939), plus $767.36 in taxes, so the final price is 1,966.36 $.
What taxes do I have to pay?
- Value Added Tax (VAT) of 21%
- 8% Virtual Transaction Tax (PAIS)
- Tax by resolution 4.815/2020 of 35% (persons who are not affected by Income Tax or Personal Wealth Tax can consult the AFIP, through an application, if it is their responsibility to request the reimbursement of the 35% paid as a deposit).
Total: 64% additional taxes.