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1) Given declining real wages last year, it might've seemed hardhearted for President @mauriciomacri to hold raises below expected inflation. That damn the torpedoes approach also hurt his standing with unions, and dented his popularity overall.
2) But it's now clear why he feared the wage-price spiral. Despite sustained sky-high interest rates and deep budget cuts, #Argentina is still struggling to speed up disinflation. Why? The most obvious culprit, beyond utility price hikes, is high negotiated wage increases.
