Uzbekistan: Public-Sector Wage Hike to Make New Inflation Wave?

The minimum wage in Uzbekistan, along with civil servants' salaries and social benefits such as pensions and disability allowances, are to be increased by 12 percent as of December 1.

It will mark the second significant hike in 2009 for state-sector wages and benefits. In August, state salaries and payments increased by 25 percent. The new minimum wage, which as of August 1 was $22 per month, will rise to just under $25 in December.

Despite the apparent increase - which does not apply to private-sector workers - most households will be find their spending power reduced by up to 25 percent, the opposition news website, Uzmetronom.com, reported on November 17.

"An analysis of the situation after each increase in the minimum wage [shows that] it is possible to predict with a high degree of confidence a rise in the cost of gasoline, utilities, public transport, essential goods, basic foods and so on," the report said.