Despite an increase in inflation, there is ‘good news’ for those who are employed, but a ‘question mark’ remains.
Despite rising prices, there is ‘positive news’ for those who are employed, but there is also a ‘question mark’.
According to one economist, wage increases are “great news” for workers. It comes at a time when many Britons are concerned about the future as a result of a rise in the UK’s inflation rate, but there are reasons to be positive.
Despite rising inflation, Vicky Pryce, the former head of the Government Economic Service, claimed on GB News this morning that improved salaries “just about” keep up with rising prices. “Inflation in the United Kingdom has increased to 3.2 percent [in August],” she explained. She went on to say, “Yes, people are concerned.” On the other side, you face the prospect of increased borrowing rates, as well as the prospect of higher wages.
“Since you said you’re not the anxious kind, the good news is that you can forget about Boris Johnson’s productivity problem.”
“Workers’ discretionary earnings are increasing for the time being before the tax hikes, enhancing their spending power.”
“This is fantastic news because it means they’ll be able to cover, if not more than cover, the current inflation problems.” Many folks are concerned about how long this will last.” Inflation rose from 2% in July to 3.2 percent in August, the highest level since March 2012 and the greatest increase since records began in 1997.
The spike is due in part to restaurant bill cutbacks announced last year, according to the Office of National Statistics (ONS), and is believed to be transitory.
Despite the fact that inflation is driving up the cost of basic goods like food, gasoline, and gas, Britons should be able to weather the storm because their incomes are expected to rise as well.
According to projections, even the lowest-paid workers could see a 5.7 percent wage increase.
This would amount to an extra £928 per year for someone working a 35-hour week.
According to sources, Boris Johnson will make the announcement soon in order to change the country’s low-wage, low-growth economic model.
The National Living Wage might rise from £8.91 to £9.42 per hour in the next two weeks.
It is anticipated to be well-received if it is published, as it is more than double the previous raise of 2.2 percent in April 2021.