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)

Be the first to react!

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

A village with 115 inhabitants wants new residents: it offers a house, a job, up to 44 thousand euros in benefits, almost free rent, an annual grant of 8 thousand euros for 3 years, and a 20 thousand euro incentive for businesses in the mountains of Italy.

NASA is offering US$ 750,000 to people from anywhere in the world who solve a problem that could decide survival on Mars: creating food for astronauts without relying on resupply from Earth.

Elon Musk’s internet comes to mobile: Starlink technology connects smartphones without an antenna via satellite, works even without carrier signal, already costs just US$10 extra in the US, and could arrive in Brazil as an included benefit.

While countries spend billions to draw water from the sea, a Nobel-winning scientist creates a container-sized machine that extracts up to 1,000 liters per day from dry air and uses ultrasound to release water in minutes, even in the middle of the desert.

After 16 years and almost 600 prototypes, a Chinese inventor unveils the world’s smallest and cheapest manned jet, at just 3.80 meters long and costing US$7.2 thousand in materials.

Belgium will sink 23 giant concrete caissons, each weighing 22,000 tons, in the North Sea to build the world’s first artificial energy island 45 km off the coast, forming offshore electrical walls.

With a wingspan of 152 meters, 76 tires, and a capacity to carry 1,270 tons, the Boeing Pelican was the giant “flying ship” that promised to cross oceans close to the water on an invisible air cushion beneath its wings.

Car dealerships avoid these used cars like they’re bombs: famous engines, problematic belts, and expensive transmissions can turn a common purchase into a huge loss in the USA.

Germany installed vertical solar panels on a lake in Bavaria, and the result broke conventional logic: instead of producing energy at midday peak, the plant generates more early in the morning and in the evening, exactly when families turn on appliances and factories are in full swing.

More than 160 million gallons of water, equivalent to 240 Olympic swimming pools, need to be pumped to remove a 100,000-ton nuclear aircraft carrier from dry dock; each of these ships undergoes a complete overhaul costing US$2.8 billion.

With installments starting from R$ 999 per month, a 75 hp 1.0 engine, a 7-inch TFT digital panel, and standard stability control, the Citroën C3 is the cheapest hatchback in Brazil in 2026 and still leaves Kwid, Argo, and Mobi behind in onboard technology.

How the US Army’s light armored vehicle mounts an anti-drone shield with radar, electronic warfare, a 30mm cannon, and interceptors capable of paralyzing entire swarms in the air

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

A village with 115 inhabitants wants new residents: it offers a house, a job, up to 44 thousand euros in benefits, almost free rent, an annual grant of 8 thousand euros for 3 years, and a 20 thousand euro incentive for businesses in the mountains of Italy.

NASA is offering US$ 750,000 to people from anywhere in the world who solve a problem that could decide survival on Mars: creating food for astronauts without relying on resupply from Earth.

Elon Musk’s internet comes to mobile: Starlink technology connects smartphones without an antenna via satellite, works even without carrier signal, already costs just US$10 extra in the US, and could arrive in Brazil as an included benefit.

While countries spend billions to draw water from the sea, a Nobel-winning scientist creates a container-sized machine that extracts up to 1,000 liters per day from dry air and uses ultrasound to release water in minutes, even in the middle of the desert.

After 16 years and almost 600 prototypes, a Chinese inventor unveils the world’s smallest and cheapest manned jet, at just 3.80 meters long and costing US$7.2 thousand in materials.

Belgium will sink 23 giant concrete caissons, each weighing 22,000 tons, in the North Sea to build the world’s first artificial energy island 45 km off the coast, forming offshore electrical walls.

With a wingspan of 152 meters, 76 tires, and a capacity to carry 1,270 tons, the Boeing Pelican was the giant “flying ship” that promised to cross oceans close to the water on an invisible air cushion beneath its wings.

Government changes rules for the wage bonus and may remove more than 4 million workers from the benefit by 2030, with billion-dollar savings.

Gasoline prices surge in the US, pushing families to credit cards as squeezed incomes turn “buy now, pay later” into an emergency option.

US$38.9 trillion debt: Elon Musk supports Warren Buffett’s radical plan that promises to end the US deficit in 5 minutes

Tight budget in Brazil: see practical strategies to get out of financial distress, avoid debt, and regain control of your life even with high inflation and compromised income

Car dealerships avoid these used cars like they’re bombs: famous engines, problematic belts, and expensive transmissions can turn a common purchase into a huge loss in the USA.

Germany installed vertical solar panels on a lake in Bavaria, and the result broke conventional logic: instead of producing energy at midday peak, the plant generates more early in the morning and in the evening, exactly when families turn on appliances and factories are in full swing.

More than 160 million gallons of water, equivalent to 240 Olympic swimming pools, need to be pumped to remove a 100,000-ton nuclear aircraft carrier from dry dock; each of these ships undergoes a complete overhaul costing US$2.8 billion.

With installments starting from R$ 999 per month, a 75 hp 1.0 engine, a 7-inch TFT digital panel, and standard stability control, the Citroën C3 is the cheapest hatchback in Brazil in 2026 and still leaves Kwid, Argo, and Mobi behind in onboard technology.

How the US Army’s light armored vehicle mounts an anti-drone shield with radar, electronic warfare, a 30mm cannon, and interceptors capable of paralyzing entire swarms in the air