Rising inflation … can't blame the workers this time
by Larry Elliott from on (#35CH5)
Latest UK labour market snapshot shows 70s model of wage-price spiral is dead and adds to argument against interest rate rise
Don't blame the workers for the highest inflation in more than five years. That's the message from the latest monthly snapshot of the labour market showing that earnings growth is stubbornly low despite the lowest jobless rate since the mid-1970s.
Back then, any pick up in the cost of living would lead to a demand for higher pay, prompting an upward wage-price spiral. But this model is dead.
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