| | |  Business News | August 2008 
Mexican Employees Win Fatter Raises in July
 Reuters
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Mexico City - Mexican unions negotiated better wages for their workers in July, suggesting an inflation spike caused by soaring food and energy costs is creeping into the rest of the economy.
Unions won their members average raises of 4.76 percent over the year-ago period in July, the central bank said last week, better than the 4.31 percent wage hikes agreed to in June.
High food and transport costs pushed Mexican annual inflation to 5.39 percent in the 12 months through July, the highest rate since late 2004.
Mexico's central bank was widely expected to raise interest rates at its monthly monetary policy review on Friday, which would be its third hike in as many months.
Employees of government-owned companies won average raises of 4.80 percent in July, while private-sector employees received 4.62 percent salary increases on average.
Inflation across Latin America has jumped this year, driven by higher demand for grains in fast-developing countries like China and also by record high oil prices.
International food and oil prices have cooled in recent weeks, although costs at Mexican gas stations are gradually rising as the government trims subsidies on fuel. (Reporting by Noel Randewich; Editing by Jonathan Oatis) |
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