(Reuters) – Argentina’s minimum wage will rise to 45.540 pesos ($389.46 in June) and 47.850 pesos for August, according to the Ministry of Economy on Tuesday.

According to the General Work Federation, “The minimum wage increases that had been scheduled for December and August have been pushed back in order protect their purchasing power”, a statement read.

This June wage increase of 16.95% is due to strong inflationary pressure on Argentina’s purchasing power.

According to Reuters, Argentina’s Consumer Price Index (CPI), is likely to have increased 5.9% in April due to an increase in prices for ‘Food and Beverages,’ and Clothing, according to a poll.

($1 = 116.9300 Argentine pesos)