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Mexico's salary increase is insufficient to raise purchasing power against the dynamism of inflation .
On September, 36,267 workers received an average wage increase of 5.1% while the annual average inflation rate stood at 6.35% , according to the Secretariat of Labor and Social Welfare ( Secretaría del Trabajo y Previsión Social abbreviated STPS ) and the National Institute of Statistics and Geography ( Instituto Nacional de Estadística y Geografía abbreviated Inegi ).
So far this year, wage negotiations reached an average nominal increase of 4.6% , higher than the 4.2% observed in the same period of 2016 , but below the 5.85% inflation rate in the first nine months of the year resulting in -1.14% purchasing power.
The biggest increase was due to a negotiation rise in the private sector, which gave an average increase of 5.3% to 35,000 workers , representing -1.01% while 1,262 workers of the public sector achieved a nominal wage increase of 1.2% , which represents -4.86% in purchasing power.
Industry workers
achieved an increase of 5.4% , benefiting 22,387 employees, the largest number in September, while the manufacturing sector stands out with an average increase of 5.3% benefiting 20,551 workers . The construction sector negotiated the highest average increase reaching 6.6% however, it only benefited 41 workers .
sg