The Dollar is showing some signs of stabilisation due to radical movements by the Fed to save the markets and economy collapsing completely. The USD came very close to a meltdown on Monday.
However from the point of view of inflation, this means very little. Prices have risen and will not go down. It is now built in and the 2008 inflation figures for the UAE will be much higher than the 11% of 2007 regardless of the dollar movement from hereon.
Are we going to see an increase in salary of around 30% to account for this and bring our salaries back to a neutral level of a year ago? I doubt it. Recession is here, times are hard and airlines will feel it. EK is counting on continued low cost recruitment and will minimise the salary increase based on this possibility. With oil at the current levels they will have to provision for recovery of this cost in the next financial year. This is the burden that we will be made to bear.
Last edited by disconnected; 21st Mar 2008 at 12:05.