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Peru Raises Minimum Wage as Surging Prices Spur Protests

  • Protests over prices have intensified in the past week
  • The March inflation rate jumped by the most since 1998
People walk along a stretch of the Panamerican Highway blocked by truck drivers demanding nationwide lower fuel costs and reduced toll payments, near Arequipa, Peru on March 28.

People walk along a stretch of the Panamerican Highway blocked by truck drivers demanding nationwide lower fuel costs and reduced toll payments, near Arequipa, Peru on March 28.

Photographer: Diego Ramos/AFP/Getty Images

Peru’s President Pedro Castillo approved by decree a 10% increase in the minimum wage following days of protests that were fueled by soaring inflation.

The hike from 930 to 1,025 soles, or around $280, is the first approved in four years and follows a series of fiscal measures taken by Castillo’s administration to end six days of protests led by farmers and truckers. Inflation accelerated in March at its fastest pace in 24 years, with the strike likely to add to local food costs.