{"id":19243,"date":"2022-05-10T15:54:46","date_gmt":"2022-05-10T15:54:46","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/all-news\/food-inflation-exceeds-10-should-have-been-reference-for-wages-economist"},"modified":"2022-05-10T16:03:37","modified_gmt":"2022-05-10T16:03:37","slug":"food-inflation-exceeds-10-should-have-been-reference-for-wages-economist","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/all-news\/food-inflation-exceeds-10-should-have-been-reference-for-wages-economist","title":{"rendered":"Food inflation exceeds 10%; should have been reference for wages \u2013 economist"},"content":{"rendered":"

Africa-Press – Mozambique. <\/strong><\/span>Mozambican economist Estrela Charles has pointed out that annual food-price inflation has exceeded 10% in the country recently, adding that that figure should have been the reference in fixing the new minimum wages instead of average annual inflation, which stood at around 7%.<\/p>\n

\u201cFood inflation is between 10% and 11%, and the minimum wage has increased between 3% and 4%, which means that it is far below what it needed to be to at least cover the rise in food prices,\u201d the economist and researcher at the Centre for Public Integrity (CIP) told Lusa.<\/p>\n

Estrela Charles says that the criterion that guided the approval of the new salaries at the beginning of this year was accumulated annual inflation, which stood between 6% and 6.7% and which included all the products in a consumer\u2019s basic basket. However, the rise in food prices is above 10%, she explained.<\/p>\n

Charles stressed that the increases in lower wages decided earlier this month do not restore workers\u2019 purchasing power, pointing to the rise of 371 meticais (\u20ac5.50) in one low-paid sector, which does not \u201ckeep up with\u201d, for example, the recent more-than 500 meticais (\u20ac7.40) increase in the price of rice and cooking oil.<\/p>\n

Charles stressed that the situation of workers is even more precarious given that they have forgone salary increases for the last two years, during the economic downturn caused by the Covid-19 pandemic, the impact of climate change and armed violence in the province of Cabo.<\/p>\n

The government and companies, she proceeded, are in a position to increase minimum wages, because the economy is coming out of the two-year recession, something evidenced, according to Charles, in the increase in job vacancies.<\/p>\n

Charles accuses the executive and employers of a \u201clack of interest\u201d in paying better minimum wages and strengthening the purchasing power of workers. \u201cEmployers will always tend to set lower and lower wages in order to make higher profits,\u201d she said.<\/p>\n

Charles also says that the government is reluctant to approve substantial minimum wages increases because several members of the executive are also employers.<\/p>\n

\u201cA good part of the business sector in the country is made up of members of the government. There is a conflict of interest, and the workers are isolated in the negotiation process,\u201d she said.<\/p>\n

\u201cThe fact that the trade unions have demanded a minimum wage of 30,000 meticais [\u20ac446.00] and the government has set the lowest salary paid in the country at just over 5,000 meticais [\u20ac74.30] shows that workers\u2019 representatives were forced into this consensus, because the difference is around 25,000 meticais [\u20ac371.0o],\u201d Charles concludes.<\/p>\n

For More News And Analysis About Mozambique<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mozambique. Mozambican economist Estrela Charles has pointed out that annual food-price inflation has exceeded 10% in the country recently, adding that that figure should have been the reference in fixing the new minimum wages instead of average annual inflation, which stood at around 7%. \u201cFood inflation is between 10% and 11%, and the […]<\/p>\n","protected":false},"author":84,"featured_media":19242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[233,281,283],"class_list":["post-19243","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-mozambique","tag-mozambique"],"yoast_head":"\nFood inflation exceeds 10%; should have been reference for wages \u2013 economist - Mozambique<\/title>\n<meta name=\"description\" content=\"Mozambican economist Estrela Charles has pointed out that annual food-price inflation has exceeded 10% in the country re ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/food-inflation-exceeds-10-should-have-been-reference-for-wages-economist\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Food inflation exceeds 10%; 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