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It's not quite as simple as that though is it.
Say, someone got a 1% pay rise and inflation was 2% (or 2-3 etc).
Assuming all other things are equal (mortgage etc) if someone (who only got 1%) who shops at Sainsburys, switched to Aldi for year, they'd be covered. No probs. Same free cash as last year etc etc.
Also, the tax allowance changes for many, have made up a bit for poor % increases (those at the bottom especially).
It's not just a PS thing either with crappy wage rises. I've had rises of 0-3% over the last several years. No big deal. Lifestyle choices affect things far more in reality.
Pay for the whole country has probably lagged for a good chunk of time (save for those at the top).
There always seems to be reasons for it though (productivity etc).
Governments propping up wages too is a disaster. Good luck with them winding back (already tried and failed) that one. |
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