Wednesday, November 15, 2006
Inflation is at 3.7% using the other ‘preferred’ calculation
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 (425 views)
3 thoughts on “Inflation is at 3.7% using the other ‘preferred’ calculation”
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Boarder says:
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.
Earth says:
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.’
Dohousescrashinthewoods says:
I have mever had a negotiation. I have always been told.