The line that payrises will cause more inflation is a cracker too.
There was and is going to be a period of civil unrest with the way the cost of living is going vs wages. Wait until winter and people need to pay for heating too and with petrol fast approaching 2 pound sterling a litre plus.
They do.
How?
We're talking about people here on the breadline, not increasing someones already large disposable income.
A ticket collector getting 33k is not on the breadline ffs.
In London you would.
How about platform staff on £20K a year?
Two economists on Newsnight stipulated that the current inflation spike isn't being caused by wage growth (unit labour which is very low at the minute) but the non labour input costs which is driving the current spike in inflation as well as excess corporate profits which they talk about and is something the government can make changes to but have so far chosen not to.
https://www.bbc.co.uk/iplayer/episode/m0018lt0/newsnight-22062022
13 minutes in.
The lady in particular who had no ties to the Tory's or Boris made it clear that the raising of interest rates was entirely the wrong thing to do as this current spike isn't caused by excess spending.
Have a listen yourself.
I have been saying that for a while.
The BoE puts interest rates down to discourage saving and encourage spending. Kick start the economy.
The BOE puts interest rates up to discourage spending and encourage saving. Rein in rampant consumer spending.
However it is not people going mad and buying TV’s and holidays that is causing inflation.
When your only tool is a hammer every problem looks like a nail.