Prime Minister Hailemariam Desalegne held a press conference on Friday, for a third time in ten months. Here are five key takeaways from the presser: 1. Salary adjustment and inflation
The Premier argued that the recent signs of commodity price rise, which followed the announcement of civil servants salary adjustment, have no economic basis.
The inflation rate was kept at single digit for two years; therefore all other factors that could give rise to inflation are in control. As the new salary scale, the details of which have not been disclosed yet, will enter the payroll at the end of this month, Hailemariam argued, there is no new money in the market that could be prompt price hike.
He also claimed the government made sure that less than half of the budget deficit will be financed from the Central Bank, in the fiscal year that begins this year.
Hailemariam appears either to have ignored or reject as irrational that expectation, in and of itself, can trigger inflation. Thus, he categorically characterized any price hike at this point as greediness that will be dealt first with “education” then with “legal measures”. 2. Andargachew Tsigie: Andargachew Tsigie’s extradition from Yemen is not […]