Inflation Vs Salary Raise - Pdf Download

Dear All,
Please i need an urgent help, i am in the stage of preparing HR budget and i have been asked to get the inflation rate of this year and the forecast salary raise percentage.
I have got the information about the inflation rate for the current year, now how can i calculate or the propose the salary raise percentage of 2013.
is there a certain formula?

Dear Onaraider,
There is no formula that links Inflation and increment.
See the logic is if an employee gets and increment of 15%, and the infaltion rate is 10%, then the effective increment for the employee is 5%.
You can refer to the attached file. It will help you.
For any further clarification feel free to write or disucss.

Dear Onaraider,
The percentage of hike you want to give will completely depends on your organisation's performance, objective and budget.

Dear Onaraider,
It is good to hear that your management is so concerned about the inflation.
First I need to understand one thing, do you give flat hike to all your employees or the percentage varies??
For any further clarification feel free to write or discuss.