Wages are growing at their fastest rate for six years - + 2.9% YoY

Generali

cells wrote: »

are they not meant to hit an inflation target of 2%....and with inflation at zero why increase rates

the next 15 years imo will be very low inflation as the semi AI robots come to market. The self drive car will reduce transport costs considerably and seeing as transport costs the UK something like 10% of GDP its going to be very significant.

also lots of LNG infrastructure started a few years back will start coming online starting end of this year which should keep coal/gas prices in check for the next 5 years

They are meant to keep inflation at ~2% but that rather depends on predicting what is going to happen in about 18 months time. If wages are accelerating, the BoE's economic model will predict rising inflation.

remorseless

mayonnaise wrote: »

http://news.sky.com/story/1553459/wage-growth-boosts-consumer-spending-power



Good stuff.

Do you have to resign and reapply for the job as a contractor?
hmmm pay rise or redundancy safety hmmm
:rotfl:

lisyloo

are they not meant to hit an inflation target of 2%....and with inflation at zero why increase rates

I think they are meant to hit a range with 2% being the middle.
They try to pre-empt, so they will be looking ahead.
CPI/RPI work on a 12 month basis so some things are easy to predict e.g. there was a big falls in oil prices a few months ago, which will "fall out" of the 12 months figures in 9-10 months time.

Generali

lisyloo wrote: »

I think they are meant to hit a range with 2% being the middle.
They try to pre-empt, so they will be looking ahead.
CPI/RPI work on a 12 month basis so some things are easy to predict e.g. there was a big falls in oil prices a few months ago, which will "fall out" of the 12 months figures in 9-10 months time.

Also, interest rate changes take 18-24 months to feed through entirely to the real economy and perhaps 12 months to have their maximum impact. If the BoE waits for inflation to hit 2% then it may be too late to keep inflation under control.

Graham_Devon

I'm sure I read on the BBC earlier than Lidl were raising it's minimum wage to £8.20 per hour across all employees with immediate effect. They were aligning themselves with the Joseph Rowntree minimum wage.

Now I can't find the story anywhere. The Yorkshire Post still has a link to it but goes to a "sorry, we can't find that page" link.

Quite a few companies have done this, so I'd imagine we could continue to see some higher wage growth figures.

remorseless

Graham_Devon wrote: »

I'm sure I read on the BBC earlier than Lidl were raising it's minimum wage to £8.20 per hour across all employees with immediate effect. They were aligning themselves with the Joseph Rowntree minimum wage.

Now I can't find the story anywhere. The Yorkshire Post still has a link to it but goes to a "sorry, we can't find that page" link.

Quite a few companies have done this, so I'd imagine we could continue to see some higher wage growth figures.

Maybe they retracted it... wouldn't be the first time someone has a big mouth!

Conrad

Rising incomes, low inflation, low interest rates, expanding economy, cheap commodities and fuel, rising employment, I sometimes think the gloomy left wing warriors are speaking to an ever diminishing constituency.

The tradesmen I know are able to demand ever increase sums, is this the lost working class that North London lefty thinks he's gonna win over?

[Deleted User]

Conrad wrote: »

Rising incomes, low inflation, low interest rates, expanding economy, cheap commodities and fuel, rising employment, I sometimes think the gloomy left wing warriors are speaking to an ever diminishing constituency.

The tradesmen I know are able to demand ever increase sums, is this the lost working class that North London lefty thinks he's gonna win over?

low inflation isn't all its cracked up to be,their are millions of people suffering because their savings aren't earning much,the economy is only making up for a lot of lost ground,cheap commodities are a sign of one thing a worldwide drop in demand..take one example coffee down 28% you,has your coffee price fallen 28%?
as for rising employment of course it is there are 330,000 more people here than last year,and unemployment has risen 3 months in a row now

LittleOne83

2.9%? Not for us frontline workers in terms NHS! Lucky to get 1% or a pay freeze!

CLAPTON

LittleOne83 wrote: »

2.9%? Not for us frontline workers in terms NHS! Lucky to get 1% or a pay freeze!

many are on an incremental pay scale : what would the actual increase be?