Inflation Inflation Inflation
Inflation Inflation Inflation
Inflation is a strange thing, RPI or CPI are general rates that are averages, they are what a may or may not affect a typical person in this country. For instance the RPI is now down to, or just under 0, however, GB liked the CPI rate because it didn't take into account the rising cost of housing during the boom and enabled him to reducte public sector pay and benefit rises during the good times.
It is all well and good saying that deflation is round the corner, however, based on the past 12 months and taking the normal Sep CPI rate as a given I am 5% worse off now than I was last year, therefore to stand still I need a 5% pay rise. If delfation does come along, and with the huge fall in the value of Sterling this is not certain, then give me a 0% pay rise, however that's tomorrow not today. During the good times we did get a little bit more (and I do mean just a little bit more) than inflation (retention, recruitment and increased Op Tempo were the drivers here) so at these times of need a slightly smaller rise is to be expected, bit GB must not take the Pish.
As an aside, the current rate of food inflation is about 10% and the cost of living for Pensioners is rising at 9%pa.