Why falling inflation is a false pretext for keeping wages low

According to Bank of England, earnings should be rising by 4% a year, but they are struggling to get above 2% - it is time the government and employers tilted wages in favour of labour

Earlier this year Shinzo Abe, Japan's prime minister, told his country's business elite that he wanted them to take a brave decision. He wanted them to raise wages.

A month or so later David Cameron followed suit. Addressing the chambers of commerce, the prime minister said it was time for Britain to have a pay rise. Two prime ministers, same message, one subtle difference: in Japan there is evidence that executives took notice of what Abe said, while in the UK we are still waiting for the long-anticipated pick up in pay.