Wednesday, Nov 15, 2006

Inflation is at 3.7% using the other 'preferred' calculation

Firstrung: Retail Prices Index (RPI) figure of 3.7% for inflation in October could lead to an explosion of wage growth next year

Better-than-expected inflation figures were overshadowed today when a separate measure used to determine pay rises and pensions hit an eight-year high. Economists warned that the Retail Prices Index (RPI) figure of 3.7% for inflation in October could lead to an explosion of wage growth next year. It is feared that rapidly rising wages could put pressure on the now more commonly used measure of inflation - the Consumer Prices Index (CPI) - which was unchanged at 2.4% last month.

Posted by converted lurker @ 10:48 AM (396 views)
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3 Comments

1. Boarder said...

Once again, rising wages are commented on as if they are bad, yet the real cause of inflation, i.e. ex nihilo money creation is unmentioned.

Wednesday, November 15, 2006 11:12AM Report Comment
 

2. Earth said...

This artical suggests that rising RPI automatically leads to higher wage settlements. Perhaps if a person works in the public sector or a belongs to a union then the term 'pay negotiations' has real meaning for them. But for a great many people 'pay negotiation' is more along the lines of 'If you don't accept this [very small] salary rise then you can always look elsewhere for employment.'

Wednesday, November 15, 2006 12:40PM Report Comment
 

3. Dohousescrashinthewoods said...

I have mever had a negotiation. I have always been told.

Wednesday, November 15, 2006 06:15PM Report Comment
 

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