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Should the GCC impose a pay rise cap to slow inflation?

by ArabianBusiness.com staff writer on Sunday, 28 October 2007

Inflation across the GCC is running at an all time high, and next month a large number of employers will embark on their annual pay reviews.

If companies offer their workers pay rises above inflation, then more money will be circulating the system, adding to further inflationary pressures.

Is now a good time for GCC governments to get tough and restrict pay increases on the public and private sector to below current inflation rates?

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