Salameh: Wage Hike to Raise Inflation by 2 Percent

Central Bank Governor Riyad Salameh predicted that the rate of inflation in Lebanon would rise by two percent should government’s wage hike decree be implemented, reported As Safir newspaper on Monday.

He told the newspaper that should the inflation reach two percent, then next year’s inflation would be estimated at around seven to eight percent.

He added however that if the Central Bank properly manages liquidity and if the prices of foreign products decrease, then inflation rates may be lower than predicted.

Salameh therefore stressed that the Bank will seek to properly manage liquidity in order to avoid the projected estimates.