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Brazil’s Inflation Is So Bad Even Central Bank Workers Protest

  • They are resuming a strike and demanding 26% salary raises
  • Protests overlap with key interest rate decision on Wednesday
The Central Bank of Brazil in Brasilia, Brazil, on Wednesday, Feb. 2, 2022.
The Central Bank of Brazil in Brasilia, Brazil, on Wednesday, Feb. 2, 2022.Source: Bloomberg

Inflation is so rampant in Brazil, having surpassed 12% a year in early April, that workers at the institution in charge of taming prices are themselves on strike, demanding wage raises to recover lost purchasing power. 

Brazil’s central bank employees in Brasilia stopped working on Tuesday, piling pressure on the institution to increase their salaries by 26% to compensate for losses to inflation in the past few years. The walkout, which doesn’t involve the bank’s senior leadership, coincides with the start of deliberations on whether to keep increasing interest rates after one of the world’s most aggressive monetary tightening cycles in the wake of the pandemic.