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
Gold sell
Period: 31.10.2026 Expectation: 3000 pips
Gold sell-off targets $4,000
18 September 2026 26
Period: 30.11.2026 Expectation: 5700 pips
Selling USDJPY down to 150.00
18 September 2026 22
Period: 30.09.2026 Expectation: 1500 pips
Invest in GBPUSD up to 1.36270
17 September 2026 36
Period: 15.10.2026 Expectation: 1000 pips
Selling SPX down to $7,490
16 September 2026 51
Brent sell
Period: 15.10.2026 Expectation: 800 pips
Brent crude sell-off targets $95.80
16 September 2026 35
Gold sell
Period: 31.10.2026 Expectation: 18000 pips
Go short on gold upon breaking $4,300
15 September 2026 60
Go to forecasts