The cost of basic food in Portugal corresponds to 13.6% of the minimum wage
Portugal – as well as other countries in the world – continues to suffer, in 2021, the economic consequences of the covid-19 pandemic. But the economy is recovering there and it is not – nor was it in the past – an impediment for many to carry out the increase in the national minimum wage (SMN). Portugal is one of those examples and, in the last month, there were many Portuguese who already had their salary increased at the end of the year.
After all, the salary has increased by 4 euros and passes 65 euros to pay the 705 euros, the minimum wage for payment of IRS 705 euros, 1% payment, but 1% for the 1% discount for Social Security .
Taking the new salary, Picodi selected a list of foods that meet the minimum nutritional needs of an adult per month and minimum-as a shopping affection to be able to compare food prices with the national salary.
Thus, it warns, that a nutritional value – being limited, but from a list of recommended adults that are used by adults, these products are healthy enough for the average, 30 liters, adults, 16.30 euros -, adults, 16 .30 euros, adults, so good that 500 grams each (10.60 euros), 1.5 kilos of rice (1.38 euros), 20 eggs (2.88 euros), a kilo of cheese (6, 79 euros), six kilos of chicken and beef (41.37 euros), six kilos of fruit (7.72 euros) and eight kilos of pulses (8.53 euros), pays 85.57 euros every month. euros.
This means that the staple foods in Portugal are basic to define what the staple foods in Portugal should say. “A year ago, these products were worth 14.7% of last year’s minimum wage. In conclusion, the growth of the minimum wage in Portugal has surpassed the increase in prices”, reveals Picodi.
The escalation of our efforts around the world And if the countries in the four corners of the world have started to raise the minimum wage, not all of them have. Picodiuma and Thailand found that, of the 64 countries analyzed, minimum wage rates in 10 countries have changed compared to last year’s ranking: Israel, Philippines, Vietnam and Peru.
The increase in the minimum wage this year is Montenegro, where the final value passes to 450 euros, a growth of 10.7% compared to 2021. “As a result, among other things, changes, with the beginning, the minimum wage in this country has increased from 222 to 450 euros net (a value of 103%). We also recorded large salary increases in Turkey (50%) and Kazakhstan (41%),” says Picodi. In Turkey, the minimum wage is €332 and in Kazakhstan €107.
In this list, Portugal occupies the 32nd place with a growth of 6%. In the neighboring country, Spain, the minimum wage increased by only 1% compared to the previous year (position 53), in France 3.1% (position 40) and in Brazil 7.6% (position 17).
In the countries evaluated, and by the way, the one that pays the highest minimum wage is Luxembourg (1919 euros) this year with an increase of 2.1% compared to the previous year.
It should also be borne in mind that the study converted all amounts into euros, net amounts and full-time.
Where can you live on minimum wage? In this analysis, Picodi also analyzed the cost of basic food in the analyzed countries, “since a life adapted to the region, and even a life adapted to various perceptions of people for the region, and even of region to region”, and even from region to region.
At the top of the list are the United Kingdom, Ireland and Australia, where the ratio of commodities to the minimum wage varies between 6.6% and 7.3%.
In the list, the 16th place is attributed to Portugal which is ahead of countries like Brazil (36.6% and 49th place) and close to France (12.5% and 14th place) and Spain (11.8% and 11th place).
And there are common countries, with problems: “The situation of workers with about or with India of the cost is not easy: with the minimum of food products consumed by India. On the other hand, in Nigeria, the minimum wage is not even enough for a modest basket of detailed products yet.
Inflation However, with the inflation that the world has been witnessing – and which Portugal does not ignore – it is possible that these values will undergo some changes. The most recent months of December have been released since the month of July 1991.
Despite Portugal being below average, inflation is also on the rise here. Data from the National Institute (INE) comments in the country began to increase the inflation rate to 3.3%.
Already the Monetary Fund (IMF) and the International Central Bank, escalating value and the numbers so important, Christine Lagarde, assumed that the fall will not come down as soon as expected.
The values we have seen are not lively, as stated by Henrique Tomé, an analyst at XTB. To the i, he warns that these conditions “again call into question whether the rise in prices is really transitory or whether they cannot last longer than expected”. And he recalls that “the possibility of seeing new generalized rises in prices end up harming the national economy”.
One thing is certain: “At this point, everyone will already pay the cost of a higher inflation rate”, says we are anticipating. “However, if this uptrend continues over the next few years, we may be even more harmed and, in certain cases, we may begin to choose to consume less of certain products, with a risk at times, which is much worse. than inflation”, he warns.
It is normal for all prices to increase due to the years. However, “when the pace of growth is those same products that tend to rise at a pace that the purchasing power of the consumer, at the outset, should not be able to keep up”. The most obvious examples are the increase in the prices of chemical consumption, electricity and domestic gas. But “ends may also undergo price adjustments, as there will continue to be restrictions on distribution chains that have also fueled the increase in prices paid by the consumer, as prices tend to increase”.
These are big warnings for the economy. “The biggest risk to the economy is the possibility that we will resist periods of stagflation. [uma combinação de estagnação económica e alta inflação], which are extremely harmful to the economy, as consumption levels can start to decline and cause a slowdown in wealth creation with direct consequences on GDP”. Despite admitting that this is an environment and “extreme”, Henrique Tomé that “accredited policy makers are committed to doing whatever it takes to stop the rise in prices before it can be ‘too late’”.