I know international leftists love Lula, but for context the minimum wage increases every year since 1994, based on GDP growth and inflation (yes, even in the Bolsonaro years, though he fucked it up 2 times). So y'all shouldn't be surprised, this happens every year.

What is different now is that the Lula administration approved a set of fiscal austerity changes, one of which imposed a ceiling on the growth of the minimum wage to those 2.5%. Without that the actual value would be R$ 1.528, a small decrease but still a defeat for social policy.

So this is actually somewhat bad news, though I understand people from the US might be impressed by the concept of inflation-adjusted minimum wage.