Increasing salaries and pensions ONLY DIMINISHES effects of inflation

Finance Minister Sinisa Mali has said that the percentage of pension growth this year will be double digit, and that the exact amount will be known by autumn.

Mali told the Vecernje Novosti daily that in September, Serbia, in agreement with the International Monetary Fund (IMF), „will have an accurate calculation, aligned with the Swiss formula“, which would take salary growth and inflation rate as parameters of the level of pension growth.

Asked whether a slowdown of inflation is expected from March, as previously announced, Mali replied that inflation was „imported“ and that „global economic problems have spilled over onto the market of Serbia, which is closely related to the European Union economy, which is the biggest foreign trade partner.

„I am optimistic, but in my estimates and plans I am always guided by pessimistic forecasts, in order to annul the additional negative effects of the possible deterioration of the parameters. We all suffer the consequences, it is inevitable,“ Mali said, adding that „Serbia manages to reduce the effects of inflation experienced by citizens by increasing wages and pensions“.

Late last year, Prime Minister Ana Brnabic said that „the increase in salaries and pensions in Serbia does not only accompany inflation, but it is also higher than inflation“.

Serbian President Aleksandar Vucic said recently that the state had managed to nullify inflation by increasing salaries and pensions, which many European countries had failed to do.

Izvor: Beta, BIZLife

Foto: Beta