Why soaring prices could mean higher pay for pulling pints

A tight labour market and high inflation may see real wages growth for some, but ongoing uncertainty for many

For several months now, policymakers at the Bank of England have been agonising about wages. They ask themselves how workers will react when they see rising prices in the shops and, worse, the rocketing cost of petrol, which last week jumped to its highest level on record.

Will they march into their boss's office and demand a pay rise of 10%? Or, more likely, will they march down the road to a rival employer prepared to increase wages by double digits to attract new staff?