Argentina's Salary Index recorded a 2.5% monthly increase in October, outpacing the month's inflation rate of 2.2%, according to the latest INDEC report. However, the recovery of purchasing power remains in a state of 'technical draw,' according to an analysis by Fundación Libertad y Progreso. Economist Iván Cachanosky noted that while the October data is positive, the recent trend shows a wage recovery that has yet to fully consolidate. He suggested that labor reform and a non-electoral year could contribute to greater formalization and wage recovery. Cachanosky also pointed out that the unregistered private sector continues to grow, while formal employment is 'somewhat stagnant.' He added that with November's inflation at 2.5%, it remains to be seen if November wages can grow at a pace that outpaces inflation. Looking towards 2026, the economist stated that the situation could improve if there is a sustained slowdown in inflation. 'We believe it will continue to decrease until it reaches around 1% monthly in August or September, which will allow wages—mainly in the private sector—to get closer to the level they had before the inherited crisis,' he affirmed. The report also warns about the employment situation.
