Dr Philpott comments:
“With the late winter and early spring still an important period for pay bargaining, the surge in RPI inflation has come at the worst possible time. There is a risk that higher inflation will trigger bigger wage rises than the UK’s ailing economy can currently afford, even though the rise in both CPI and RPI inflation is a temporary spike that will almost certainly be followed by an equally sharp fall later in the year. While it may not be comforting news for already hard pressed workers facing a rise in their cost of living, real wages will have to be squeezed if jobs are to be preserved and any further rise in unemployment minimised.”
Commenting on the inflation figures, TUC General Secretary Brendan Barber said:
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‘The inflation message is don’t panic. The rise today has more to do with what was happening a year ago than anything new in the economy, and is likely to fall back to its target range in due course. The real threat remains a double-dip recession, and boosting jobs and growth remain the most important priorities.’
Paul Gray is an entrepreneur and digital publisher who creates online publications focused on solving problems, delivering news, and providing platforms for informed comment and debate. He is associated with HRZone and has built businesses in the HR and professional publishing sector. His work emphasizes creating industry-specific content platforms.
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