An increase in the minimum wage will not impact inflation, says BBVA Bancomer

The rise of 16.21% to the daily minimum wage in Mexico is an “accurate” decision because it will not impact inflation and will benefit workers with the lowest salaries, the financial group BBVA Bancomer said.

“A new increase in the minimum wage of about 16% was announced two days ago. We believe that it is an accurate measure that will help favor the purchasing power of the workers who earn the least, “said Carlos Serrano, chief economist of BBVA Bancomer, a Spanish subsidiary of BBVA, in the presentation of the report.

In addition, the increase “should not have inflationary pressures because the number of workers who perceive it in the formal sector is relatively low, at 3.3%, and due to the absence of a domino effect on those who earn more than a minimum wage,” he added. A specialist, who ruled outfalls in employment.

Source: Televisa.NEWS