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Wage hikes may boost inflation

The UAE's recent 70% rise in salaries for government employees will lead to an overall increase in wages nationwide, which could aggravate inflation as the resulting increase in demand will impact prices, according to Marios Maratheftis, regional head of Research for the Middle East, North Africa and Pakistan of Standard Chartered Bank. He said all GCC are facing high inflation mainly due to high liquidity, supply shortages and rising costs of imports owing to the weakness of the dollar to which the currencies are pegged, reported Gulf News.