2 December 2022 | Other

Mexico will increase the minimum wage by 20%, which will increase fears about inflation

On Thursday, officials said that employers, union representatives and the government of Mexico had reached an agreement on a decision to increase the minimum wage by 20% next year. However, some critics warn about the potential risk of greater inflation.

During a regular press conference with President Andrés Manuel López Obrador, Labor Minister Luisa Maria Alcalde said that the standard of minimum wage will be increased to about 207 pesos ($10.82) per day from 172.87 pesos ($9.03) per day. The wage increase for workers on the U.S.-Mexico border will come to 312 pesos per day, compared to 260 pesos per day.

Lopez Obrador took office at the end of 2018, with his goal of balancing huge income inequality in Mexico. Since his nomination, the administration implemented a double-digit percentage increase every year, which is followed by that increase.

Lopez Obrador calmed concerns about inflation by telling reporters that the last increase of minimum wage included an increase in prices for basic necessities, which means that it was calculated assuming inflation.

He said the government sees no risk of higher inflation.

Company MarketCheese
Period: 30.06.2026 Expectation: 3300 pips
Buying USDCAD up to 1.41500
10 April 2026 31
Period: 17.04.2026 Expectation: 700 pips
AUDCAD is at risk of correction amid fragile Middle East truce
10 April 2026 28
Gold buy
Period: 30.04.2026 Expectation: 800 pips
Invest in gold once $4,800 gives way
10 April 2026 49
Brent sell
Period: 17.04.2026 Expectation: 630 pips
Brent crude sell-off targets $92.5
10 April 2026 29
Period: 17.04.2026 Expectation: 920 pips
Friday profit-taking puts GBPUSD buyers on sidelines
10 April 2026 28
Period: 30.06.2026 Expectation: 3000 pips
Buying USDJPY up to 162.00
09 April 2026 65
Go to forecasts