Tuesday, February 7, 2023

This supermarket decides to raise wages by “copying” the inflation rate

Inflation is a phenomenon that occurs when there is a widespread and sustained increase in the prices of goods and services.

This means that as prices rise, the purchasing power of money decreases. In other words: with the same amount of Mexican pesos, people can buy fewer products and services.

The effect of inflation on families and businesses can be significant. For families, rising prices make it difficult to buy essential goods and services such as food, clothing, and housing.

Of course, it also affects the ability to save and invest in the future.

For businesses, rising prices can affect their profitability. If the prices of the products and services they sell increase, but the cost of production does not increase to the same extent, this reduces their profit margin. If prices are constantly changing, it can be even more difficult for companies to predict their long-term profits.

The problem in salary is clearly visible. If wages do not rise at the same rate as prices, workers see a reduction in their purchasing power. There is dissatisfaction and low productivity.

mercadona supermarket increased salary according to inflation

To avoid these problems, the Spanish supermarket chain Mercadona announced that it would raise wages in line with inflation.

As the company announced this Friday, December 30, the decision applies to all its employees in Spain and Portugal. They will follow the official inflation rate registered in December and the idea is to repeat it in the following months.

“The goal is to maintain the purchasing power of all the people who make up Mercadona, as they are our best asset to retain customers,” explained in a statement the company, which is the largest in Spain by billing and market share. is big.

The measure will begin to apply to about 100,000 workers in the two countries from January pay. According to what was said, the December consumer price index will be equal in both Spain and Portugal.

European retailers such as this supermarket have long faced workers’ demands for wage increases that match or exceed inflation, which reached its highest point for a maximum of three decades in several countries, including the two markets in which Mercadona is present.

CPI of spain According to information from the National Institute of Statistics, it grew by 5.8 percent year-on-year in December. Average annual inflation was 8.4 percent, the highest since 1986.

in PortugalMeanwhile, climbed up to 9.6 percent in the last month of the year and The 2022 average was 7.8 percent.

now read:

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He estimates that inflation will “fall precipitously” in 2023.

Nation World News Desk
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