Wages and pensions increase in Kyrgyzstan may result in inflation
Wednesday 25 May 2011
Increase of wages and pensions in Kazakhstan, Uzbekistan, and Kyrgyzstan may result in inflation, IMF Resident Representative in Kyrgyzstan Koba Gvenetadze said today at press conference.
According to him, there is recovery tendency after the economic crisis in the Caucasus and Central Asia. “There are lots of difficulties against a bright-eyed background. The threat of inflation is not unique to this region – they exist all over the world. The main factors increasing prices are oil and food. A number of countries in Central Asia have responded to inflation by raising wages and pensions, but this can lead to inflationary effects of the second-order,” said Koba Gvenetadze.
According to him, countries should carefully monitor base inflation, which is calculated without account of food prices and carries out a tight monetary and credit policy.