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Salary increases and price hikes are conjoined twins
Published in The Saudi Gazette on 24 - 12 - 2012


Mohammed Ahmed
Al-Hassani
Okaz newspaper
When the government increases the wages of its employees, market prices will automatically jump, even if the hikes are only nominal. The prices of all commodities will go up without exception. These include food, services, maintenance and even haircuts.
When the government raises fees to renew the visas of workers in the private sector, this will also be reflected on prices. It is as if the rises in salaries or fees and price hikes are conjoined twins that can only be separated by the famous surgeon Dr. Abdullah Al-Rabeeah.
I do not remember any moment during the past 50 years when any of the government's warnings against price hikes was ever heeded. The government's threats to the businessmen, industrialists and even wielders not to increase prices have been ignored. All these warnings fell on deaf ears.
Those who dared to increase prices did not only defy the government's warnings but they were not willing to back off. The citizen will next day find that the price hikes have become a reality that he or she must deal with and accept willingly or unwillingly. It is obvious that those who raise prices do not fear government reprisals.
Therefore the citizens have become apprehensive of any increases in monthly salaries, especially low-income ones. They will discover next day that the prices have already absorbed the slight increase in their salaries. They will have to cope with the increases in housing rent, medication and all other services.
People sometimes say that the price increases are not only natural but are also an international phenomenon. However, no one is willing to explain to us how international price rises will duly coincide with local salary rises. Maybe the decision to increase local salaries is made in anticipation of international price increases.


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