Inflation in March remained within the forecast and indicates a lack of growth impact of minimum wages on the General price growth.
“Prices in the consumer market in March compared to the previous month increased by 1.8%, year – to-date is 3.9%. The latest figure is more than in previous months, but expected and within forecasted settlements”, – stated in the message.
According to the State statistics service, the key causes of General price increases in the seasonal growth of prices for bread, meat and dairy food group, as well as the increase in electricity tariffs and increase in excise duties on alcohol and tobacco. it is noted that with the decrease in prices for vegetables (19.2%), significantly (7.3%) cheaper eggs.
The Ministry notes that the initiative of the Cabinet to raise the minimum wage, which came into force on 1 January 2017, does not have a significant impact on prices. Moreover, a two-fold increase in the minimal salary is consistent with current economic realities. Analysis of the labour market shows that employers offer a minimum salary, only 34% of vacancies for other positions higher wages.
“According to experts, the increase in the minimum wage was a step to legalization of relations between employers and employees. The government forced entrepreneurs not only and not so much to increase salaries, how much to legalize them. Money that now spill into the cash circulation in the form of salaries, and so came to the economy, but because of the payment in “envelope”. That is, the additional pressure on cash prices directly due to the increase in the minimum wage is not created”, – noted in the Ministry.
We will remind, in January the national Bank worsened the forecast of inflation due to the increase of the minimal salary: from 8% to 9.1% in 2017, and in February of risky raising the minimum wage to RS 3200.
© 2017, paradox. All rights reserved.
Russian Defense Minister Sergey Shoigu has met with top military officials to discuss the battlefield…
The German ambassador to the Palestinian Authority has been hounded by an angry mob and…
The Biden administration is considering a ban on enriched uranium from Russia using the president’s…
State troopers used pepper spray and stun grenades as they arrested dozens of pro-Palestine protesters…
The number and frequency of Ukrainian soldiers receiving training in US bases in Western Europe has dropped…
EU foreign policy chief Josep Borrell has insisted that member states don’t want their citizens…