Caribbean & Central America - January 2012 (ISSN 1741-4458)

Minimum wage increase: At the end of 2011, Colom decreed a minimum wage increase of 5.73% (and 6.75% for those working in the textiles sector), bringing the daily minimum wage to Q$62.5 (US$7.95) and Q$68(US$8.65) respectively. The rise, which Colom said was in line with inflation (which closed at 6.2% in 2011), was slammed as “miserable” by unionists such as José Pinzón of the national Central General de Trabajadores de Guatemala (CGTG) given that more than 53% of Guatemala's 14.3m inhabitants live in poverty and 13% in extreme poverty.

Inflation: According to the national statistics institute (INE), the cost of a basic food basket reached Q$2,440 (US$310) in December 2011, an increase of Q$291(US$37) on the same month the previous year. According to local economists, factors driving up food costs include the effects of climate change, which have had a negative impact on harvests, and high transport costs caused by the poor state of infrastructure.