Mexico | Increase in minimum wage, without effects on inflation and employment

Summary

Last December an increase of 20% was announced for minimum wages for this year. This will obviously mean an increase in the standard of living of those workers who perceive it: about a million people, according to the National Survey of Occupation and Employment (ENOE).

Key points

• Key points:
• The market does not seem to anticipate a significant increase in inflation
• It is hard to think that this increase will mean a substantial increase in production costs since the number of workers who receive the minimum wage is relatively low (around 5% according to ENOE)

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