MNI BRIEF: Brazil CenBank Scrutinising Wage Increases -Guillen
Brazilian central bank Deputy Governor Diogo Guillen says wages have been increasing by around 5% in real terms.
The Central Bank of Brazil is looking "carefully" at recent data on wage increases for signs of inflationary pressure, Deputy Governor for Economic Policy Diogo Guillen said on Friday.
Wage settlements have provided real increases of around 5% as inflation has eased, Guillen noted.
"We must look at this carefully. We do not think it signifies pressure, but one must look carefully because it affects services inflation," Guillen told an event sponsored by the Brazilian Association of Publicly Traded Companies (Abrasca).
Guillen added that long-term inflation expectations remain unanchored at around 3.5%, above the 3% target. "We will continue to pursue 3% inflation, which is the mandate of the central bank," he said. (See MNI INTERVIEW: Copom At Ease With Market Rate Pricing-Kfoury)