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gruffydd

Increase In Average Earnings

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Average earnings rose 4.3% in the year to June, up from 4.1% in May (ONS)

Was this expected? Will this influence future IRs? Hasn't the MPC been v concerned about the possibility of a pick up in wage inflation?

Edited by gruffydd

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Average earnings rose 4.3% in the year to June, up from 4.1% in May (ONS)

Will this influence future IRs

If Merv follows the philosophy at the Fed earnings are the supreme factor to watch in the fight against inflation. It looks like the toothpaste is out of the tube. 6% IR may yet be a reality before the winter sets in in which case Gordon's miracle economy of HPI-MEW may not see another Spring.

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6% IR may yet be a reality before the winter sets in

I don't see that happening. Maybe by mid or end of 2007 - I'd like to be pleasantly surprised though :)

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Average earnings rose 4.3% in the year to June, up from 4.1% in May (ONS)

Was this expected? Will this influence future IRs? Hasn't the MPC been v concerned about the possibility of a pick up in wage inflation?

I reckon that they will allow wage inflation to approach 5%, and will continue targetting price inflation via CPI. Nominal house prices between 0 and 5% over the next 5 or so years, implying a real correction of between 0 and 25%.

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I'd love a 4.3% pay rise!

I reckon that they will allow wage inflation to approach 5%,

problem is, firms will outsource work where possible.

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Average earnings rose 4.3% in the year to June, up from 4.1% in May (ONS)

Was this expected? Will this influence future IRs? Hasn't the MPC been v concerned about the possibility of a pick up in wage inflation?

I wish my earnings had increased by that much. :(

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I wonder if there are a small amount of high earners getting massive pay rises off-setting the

majority who are getting measly rises to make this 4.3% figure.

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I don't see that happening. Maybe by mid or end of 2007 - I'd like to be pleasantly surprised though :)

did you see the last interest rate rise happening?

Average earnings rose 4.3% in the year to June, up from 4.1% in May (ONS)

Was this expected? Will this influence future IRs? Hasn't the MPC been v concerned about the possibility of a pick up in wage inflation?

The BoE will have to react to this if they want to maintain any credibility.

Spiralling wage inflation is very hard to stop once it starts. It needs to be stopped before it starts.

I wonder if there are a small amount of high earners getting massive pay rises off-setting the

majority who are getting measly rises to make this 4.3% figure.

It could just as easily be due to low earners getting more as it can't be easy paying all the bills on minimum wage

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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