Employers are under pressure to increase pay in line with the latest rise in inflation as unions debate the UK wealth gap.
Retail Price Index (RPI) is now at a ten-year high of 4.8%. Tony Woodley, general secretary of the Transport and General Workers Union (T&G) said, “this bad news underlines the importance of pay improvements to secure proper living standards for ordinary working people.
“The UK wealth gap between rich and poor continues to widen, with pay awards lagging well behind the rewards of society’s fat cats.”
“T&G members are angry that they are expected to continue to contribute productivity improvements while absorbing the increasing cost of basics like food and fuel.”
The T&G is now launching a campaign to push for pay rises ‘reflecting the real cost of living rather than the headline inflation rates’.
Inflation increases have also led to speculation that a further rise in the Bank of England interest rate is on the cards.
There have been three rises to the interest rate since last August in government attempts to get the Consumer Prices Index down to its target of 2%. It currently stands at 3.1%.
The Monetary Policy Committee kept the interest rate at 5.25% earlier this month but an increase to 5.5% or more is now widely expected in May.
© Crimson Business Ltd. 2007