If Central Government has given a pay rise of 21%, how come we say 12% inflation rate is high.?
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I am not a finance expert. But I think Inflation is dependent on pay rise. Now since central government has given a pay rise of 21%, everyone will ask for same pay rise. This applies to lower level like a vegetable vendor to. This vendor might not know @ pay rises, but he will see that people are ready to pay, so he will ask for more, thus pay rise, & rise in inflation. I can say weather this pay rise is right or wrong, but it will definitely rise the inflation.
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Answer:
uh, is this the US??? central government??? i will be happy to see 2-5% in my scientific field ...
Ani D at Yahoo! Answers Visit the source
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