High Prices: Monthly wages of Algerians should reach at least 50.000 ZDZ

International Economic Expert M’hamed Hamidouche warned of the explosion of social conditions as a result of the terrible decline of the purchasing power of Algerian families, blaming the government, which is fully responsible for this explosion, of what he described as the specter of inflation since the beginning of this year.

Dr. Hamidouche told Echorouk o, Monday, that the rate of inflation, which reached 9.3% during the first half, as announced by the Minister of Finance before the NPC, is very dangerous, because it means more precisely that the Algerian families lost almost 10% of the real value of household income , which is the level that the spokesman described as an excess of patience for the Algerian family, especially when it comes to families with single income.

“I expected the outbreak of a new movement of demanding higher wages in all sectors, especially the most affected by this serious situation, which would lead to the same economic and social problems, that were caused by exaggerated spending by government in investment programs that become impossible to monitor, and the increases that were not studied in retrospective wages since 2008, sparking domestic demand, so the government resorted to the easy solution, which is importation”.

“We can not get out of the spiral of inflation, because we are facing a case of vocarious spending by the government during the implementation of schemes of large public spending, in addition to the problem concerning also the existence of a significant part of the requirements for the implementation of the program, which requires importing from abroad, which means that there is an imported inflation ,and the inability of the authorities of control to play their real part, because the financial law 84/17 of 1984 is outdated and become invalid in light of the economic openness, on the grounds that it is a law that was passed in the time of central planning and socialist economy, when the state was the only player and did not need those who are watching its actions,” he explained.