The minimum wage increase in Brazil leads to higher prices overall, affecting both consumers and firms. This means that when the minimum wage goes up, prices for goods and services also go up. This can impact low-income individuals more than higher-income individuals, especially in regions with lower economic status. Inflation caused by minimum wage hikes can further hurt the poor, who are more vulnerable to rising prices. This study shows that the minimum wage doesn't just affect workers' pay, but also has a ripple effect on the cost of living for everyone.