About 40.6% of Salary Increases Fell Well Below Inflation; Only 25.4% of Increases Exceeded the INPC in the Previous Year, According to Fipe

Written by Bruno Teles

Published on 27/01/2023 at 14:43

Updated on 27/01/2023 at 15:25

Reajustes salariais (Foto/divulgação)

Seja o primeiro a reagir!

Almost 4 in every 10 salary adjustments obtained by workers in collective negotiations in 2022 were below inflation. These data come from the Salariômetro of Fipe (Foundation for Economic Research).

40.65% of negotiated adjustments in mid-2022 were below the inflation measured by INPC, which closed the previous year at 5.93%. Only 25.4% of the agreements were higher than the INPC, with the other 34.2% equal to inflation.

In proportions, the worst month of 2022 was April, with about 54.1% of the adjustments below inflation. The average value of the minimum wage rose from over R$ 1,352 in 2021 to R$ 1,481 in 2022.

Improvement Compared to Salary Adjustments in 2021

Even with the low share, the proportion of adjustments below inflation decreased compared to 2021, when they accounted for almost half (around 49.7%) of negotiations. According to Fipe, this decline accelerated in the last months of the year. In December, 74.6% of the adjustments were above the INPC.

ARTICLE CONTINUES BELOW

Outlook for 2023

The expectation is that, with a more controlled inflation, “positive real adjustments should continue,” according to Fipe.

This real increase in salaries is extremely important because it ensures the purchasing power of the population. Even over time, with some adjustments lower than inflation, workers still lose the ability to buy the same things they consumed the previous year, worsening their living conditions.

Preliminary data from January already indicated a small improvement compared to December. In the last month, 82.4% of these adjustments were above inflation. The other 11.8% were below the INPC and more than 5.9% equal to inflation.

Despite this, the Salariômetro still reports that bank projections indicate a slowdown in the INPC throughout 2023, decreasing from 5.9% to an accumulation over 12 months until January for a rate of up to 5.6% in December.

About 40.6% of Salary Increases Fell Well Below Inflation; Only 25.4% of Increases Exceeded the INPC in the Previous Year, According to Fipe

Almost 4 in every 10 salary adjustments obtained by workers in collective negotiations in 2022 were below inflation. These data come from the Salariômetro of Fipe (Foundation for Economic Research).

Improvement Compared to Salary Adjustments in 2021

Outlook for 2023

Salary Adjustments Fail to Keep Up with Inflation

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

BRICS is preparing a payment system inspired by the Brazilian PIX that will allow direct transactions between countries using national digital currencies without relying on the dollar or Western banks as intermediaries.

The SUS waiting list for surgeries has more people than the entire population of six countries.

Brazilians spend more hours in traffic each year than on vacation.

São Paulo and the Atacama are at the same latitude: what separates a metropolis of 22 million people from a desert is a forest 3,000 km away.

USP technology was used by NASA in Artemis II.

About 40.6% of Salary Increases Fell Well Below Inflation; Only 25.4% of Increases Exceeded the INPC in the Previous Year, According to Fipe

Almost 4 in every 10 salary adjustments obtained by workers in collective negotiations in 2022 were below inflation. These data come from the Salariômetro of Fipe (Foundation for Economic Research).

Improvement Compared to Salary Adjustments in 2021

Outlook for 2023

Salary Adjustments Fail to Keep Up with Inflation

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

Brazilians spend more hours in traffic each year than on vacation.

Privatized refinery charges diesel 87% more expensive than Petrobras.

IDV inaugurates production line in Minas Gerais to manufacture 420 LMV-BR 2 armored vehicles for the Brazilian Army and aims for export.

Brazilian multinational with debt exceeding R$ 11 billion resorts to the United States Justice and requests an additional 75 days to try to avoid a larger collapse, preserve contracts, and save 23,000 jobs.

With a loan of R$ 12 billion and a restructuring plan, Correios becomes the state-owned company with the largest debt guaranteed by the Treasury.

BRICS is preparing a payment system inspired by the Brazilian PIX that will allow direct transactions between countries using national digital currencies without relying on the dollar or Western banks as intermediaries.

The SUS waiting list for surgeries has more people than the entire population of six countries.

Brazilians spend more hours in traffic each year than on vacation.

São Paulo and the Atacama are at the same latitude: what separates a metropolis of 22 million people from a desert is a forest 3,000 km away.

USP technology was used by NASA in Artemis II.