Economy

As inflation picks up, Brazil raises minimum wage again

Inflation reach 4.48% last year, well above the 3.86% previously estimated by the government

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  • In practical terms, the new value will reach BRL 1,045;
  • This year, as the country’s economy accelerates its pace, the expectation is that inflation also picks up.

(Updated at 19 p.m.) Brazil’s President Jair Bolsonaro announced this Tuesday a new increase in the minimum wage as a way of restoring at least some of Brazilians’s purchasing power. This will made via Provisory Measure, according to news portal UOL, and the new value, of BRL 1.045, will enter into force from 1st February. Earlier today, according to Folha de S.Paulo, the team of Paulo Guedes was already studying the issue.

The inflation measured by the INPC, index commonly used for negotiations and wage adjustments, reach 4.48% last year–well above the 3.86% previously estimated by the government to correct the minimum wage from BRL988 to BRL1,039.

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This year, as the country’s economy also accelerates, the expectation is that inflation also picks up.