Campos Neto states that the labor market scenario is a “big surprise,” but warns of the impact on a potential inflationary process The president of the Central Bank, Roberto Campos Neto, stated that the labor market signals a scenario of full employment.
According to him, the context is a “big surprise,” but raises a warning about the concern regarding a potential inflationary pressure.”
The Central Bank loves it when we have a full employment regime, when everyone looking for work finds it, which is our current situation, which has improved a lot and was a big surprise,” he declared in an interview with CNN Brasil on Tuesday (April 30, 2024). advertisement”The concern arises when companies can’t hire, and you have to start raising wages.
If you raise wages to the same production level, that means you are starting an inflationary process. So, the concern comes from there,” he said.
The economist stated that the apprehension is greater around the service sector, with a greater emphasis on labor-intensive services due to the demand for labor.”
There is this concern because there is uncertainty about how tight labor affects the services sector. [This indication of inflationary pressure] appeared in 2 or 3 inflation numbers, but recently it has been a bit better,” he said.
Campos Neto argued that inflation is the “worst thing for inequality” and that its combat needs to be thought of as a social policy.”
Inflation creates a large inequality. It allows those with money to remunerate their money above inflation and those with less money not only don’t earn the same money, but also see their purchasing power eroded on a day-to-day basis,” he said.
According to the economist, the independence of the Central Bank is essential to ensure better control.Read below other statements made by the president of the Central Bank during the interview with CNN Brasil:
