Mexico central bank flags minimum wage hike inflation risk

Mexico’s central bank warned that a recently announced minimum wage hike could fan inflation, according to minutes of the Dec. 19 monetary policy meeting published yesterday.

Some of the bank’s board members argued that that emerging risk will make it difficult to bring inflation to the bank’s 3 per cent target in 2020, the minutes showed.

President Andres Manuel Lopez Obrador’s government last month agreed to raise the daily minimum wage by 20pc, the biggest wage hike in the last four and half decades and the second consecutive major increase in as many years.