(Bloomberg) -- Peru's President Pedro Castillo approved by decree a 10% increase in the minimum wage following days of protests that were fueled by soaring inflation.
The hike from 930 to 1,025 soles, or around $280, is the first approved in four years and follows a series of fiscal measures taken by Castillo's administration to end six days of protests led by farmers and truckers. Inflation accelerated in March at its fastest pace in 24 years, with the strike likely to add to local food costs.
The decision to increase wages benefits over 1.4 million people and will take effect as of May 1. It will help workers and their families “offset the increase in living costs due to external factors,” Peru's labor ministry said in a statement.
Inflation has been driven mostly by a rise in commodity prices due to Russia's invasion of Ukraine. Finance Minister Oscar Graham and other ministers traveled to the heart of the protests in the central region of Junin, where they announced fuel and food tax cuts.
Partial agreements with protesters led to a temporary halt of the strike, although some roads remain blocked in the southern regions of the country. According to government reports, four people died as a result of the protests in Junin, while 22 people were arrested and 15 police officers injured.
On Sunday, the Finance Ministry published a decree to exclude some types of gasoline and diesel from the selective consumption tax. The discount will be applied as soon as next week and could be extended until December.
©2022 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
