MEXICO CITY, Dec 1 (Reuters) - Mexico will raise the minimum wage by 20% next year after employers, labor representatives and the government reached an agreement, officials said on Thursday, although some critics warned the move could fuel inflation.
The latest minimum wage increase was calculated taking inflation into account, particularly price increases for basic goods, Lopez Obrador told reporters, playing down inflation concerns.
Gabriela Siller, an economist at Banco BASE, pointed to three reasons why she believes the planned wage increase will pressure inflation further, even if some salary hike was already baked into inflation forecasts.
Luis Munguia, head of Mexico's National Minimum Wage Commission (CONASAMI), said prices are expected to stay virtually flat because labor costs are already low in Mexico.
Salaries in Mexico remain far below U.S. levels, where the federal minimum wage stands at $7.25 an hour.