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Salary hike will raise inflation: Planning minister

Sunday, 14 December 2014


Planning Minister AHM Mustafa Kamal fear the proposed salary hike of government employees will raise inflation.
He prefers raising the salaries of public servants in stages to control the market situation.
Kamal's comment comes amid speculations that the salaries of government employees will be raised in December.
Media reports claim this time the salary will be hiked by as much as 100 per cent.
An increased salary will trigger inflation, he told reporters on Sunday.
Inflation in Bangladesh has been cooling down over the last six months.
According to Bangladesh Bureau of Statistics (BBS) inflation stood at 6.21 per cent in November on point-to-point basis.
A week ago, the minister had hoped average inflation would come down 6 per cent by the end of the current fiscal.
Finance Minister AMA Muhith, too, had announced to rein in inflation below 7 per cent, according to a news agency.