Minimum Wage Increases in Nearly Half Latin American Countries Fail to Keep Up with Inflation

Countries where inflation is completely off the rail like Venezuela and Argentina: In those countries, the local currencies largely disintegrate in value. In Argentina, the minimum wage has been increased a few times and could be raised by 75.5% by November, however, inflation reached 90% in the same month.   

The major economies of the region with inflation between 8 and 10%. Mexico and Brazil have minimum wages ahead of inflation. The two biggest economies in the region, Mexico and Brazil, managed to control their inflation levels comparable to those of the Euro Zone and the United States at around 8-9%. Mexico has been raising their minimum salary significantly over the past few years, specifically to 22% in 2022, however, it is still below the average in the region around US$265 per month. Brazil successfully controlled its inflation, keeping it relatively low this year with a 10% minimum salary increase.  

The final group of countries which exhibit lower levels of inflation, very often below 5%, include Panama, Bolivia, and Ecuador. These countries in general managed their minimum salary increase above inflation.