Chavez raises minimum wage by 25%

CARACAS: President Hugo Chavez announced a 25-per cent increase in Venezuela’s minimum wage on Friday to try to blunt the effects of soaring inflation, and defended his handling of an energy crisis and other domestic problems.

Mr. Chavez challenged opponents’ predictions that his popularity could take a dive due to measures such as last week’s currency devaluation and rolling blackouts imposed by the government.

Mr. Chavez said the minimum wage will increase 10 per cent in March and 15 per cent in September, bringing it to nearly 1,200 bolivars, or $521 at a new preferential exchange rate set last week for priority goods such as food. Inflation is widely expected to surge higher this year after last week’s devaluation.

Mr. Chavez’s government also began power outages of up to four hours a day throughout the country this week. But a day after the measures took effect, Mr. Chavez suspended the outages in the capital of Caracas, saying the rationing plan was riddled with mistakes.

Critics say Mr. Chavez backtracked in response to widespread anger among the city’s estimated six million residents.

Venezuelans have also been coping with water rationing.

Source: The Hindu.
Link: http://www.thehindu.com/2010/01/17/stories/2010011756571200.htm.