Mexico central bank chief says wage hikes unlikely to affect inflation

MEXICO CITY: Mexico's central bank chief Agustin Carstens said on Wednesday that conditions in the labor market have been tightening, but that there have not been signs of major pressure on salaries in a way that could affect the outlook for inflation.

Speaking after the central bank's release of quarterly growth and inflation figures, Carstens also said that increasing Mexico's minimum wage appears prudent, and would not disrupt a slowdown in inflation.

Earlier this week, Mexico's government said that from December the minimum wage would be increased to at least 88.36 pesos ($4.74) per day, up from 80.04 pesos.