High inflation may lead to mid-year wage increases

Analysis

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The high inflation may prompt mid-year wage increases, writes business daily Világgazdaság. The Permanent Consultative Forum of the Competition Sector and the government met this week, where the government briefed the social partners on the economic implications of the war. 

The biggest challenge in the coming months will be to preserve the buyer value of earnings, union leaders told the newspaper. 

"We are constantly negotiating with employers that where we have already concluded a wage agreement for this year, employees may receive wage compensation for higher-than-expected inflation," Melinda Mészáros, president of the LIGA Unions, said. 

Rather than wage negotiations, the purpose of this meeting was for the government to hear the information provided by its social partners. Based on these, it expects inflation of 10% this year and 5% lower next year, so it is inevitable that much of the wage increases will be taken away by the drastic rise in consumer prices.

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