Wage push inflation

March 25, 2024 12:21 pm

The International Monetary Fund is advising the government to relook at the minimum wage in terms of the increasing trend of inflation we are currently experiencing.

According to IMO Mission Chief to Fiji Marshall Mills the organization has never seen serious wage-push inflation in Fiji where higher prices are being pushed up by higher wages.

Marshall believes that is a losing battle for Fiji and advises the government against it.

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“So far, we haven’t seen serious wage-push inflation, that is, prices being pushed up by wages. That ends up being a losing battle. If you push up wages, it pushes up inflation. That undermines higher wages. So we would advise Fiji to avoid that.”

Mills says the government must monitor the cost of services and be careful if that materializes.

The IMO is adamant that Fiji is doing well financially, looking at the growth and the inflation rate.