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Thursday, 20 January 2011

Inflation hits 3.7% after record monthly increase

I find this interesting because as a working man I am feeling the effects of this on my day to day living rather than just from an academic point of view. My monthly travel card is up by 5%, and with food costs rising too my wages are coming under greater pressure. The thing is that my wages have not increased to compensate for the rising costs of living. I hope that the Bank and government get a handle on this because it's a worry. As a saver I am also concerned about the low interest rates which would have some small compensatory pressure by helping my savings. There is clearly a moral hazard issue here, but I am far more concerned about the money in my bank account than the moralities, but when the actions of some well rewarded financial services types adversely impact my living standards it's not abstract

"I'm sure we'll be advised that holding wages down while the cost of living rises is the highest form of social responsibility. But with CEOs' salaries rising at record rates, with the Forbes Rich List collective value rising by a record 40% last year, it doesn't sound as if this advice is being applied universally.

In fact, it sounds like outright economic class war: senior posts in all institutions now are being paid top-rate salaries in return for reducing costs and salaries among the lower-paid. I work in a university and the above applies there in spades"

Excellent point

1 comment:

Paul Garrard said...

My monthly rail season ticket is up over 6%. Beer and other essentials at the supermarket seem to have shot up since christmas.there's now too much month left at the end of my wages