Government, business and key trade unions Friday signed a pact designed to stop Brazil’s high inflation rate from spiraling out of control.
Officials said the three groups agreed to fix inflation this month at 26.5% and 25% in December.
Ninety-four items, including electricity, transport, postal services, beer, tobacco and certain foods will have price rises set at this level.
Under the pact, wages will be adjusted by 21.39% in November and 26% in December.
In October prices soared a record 27.25% and Brazil was gripped with the fear that its cruzado currency was on the road to collapse.
The new social pact gives the government 30 days to “make a new proposal for stabilizing public finances.”