The warning comes a few days after the government announced that it is prepared to hike civil servants wages by four percent for 2014/15 financial year.
Inflation currently stands at 4.1 percent and is within the bank's target of maintaining the rate of increases in prices between three and six percent.
The bank also observed that “any unanticipated large increase in administered prices and government; levies, as well as international food and oil price can also put pressure on inflation.”
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