Wage growth accelerates to 5.6% in new headache for the Bank of England

34 comments

1. I do enjoy the spin that we are finally getting out of the flat wage growth since 2008 is a bad idea for the “real economy” we feel day to day.

2. So let me get this straight, they want low inflation, zero wage increases, yet we can’t possibly have cheaper rent / cost of living ???? Sounds like I need to get a job at the Bank of England! These fuckers are paid to not give a shit about anyone but themselves…..

3. So if wages remain at their current level, we’re fucked.

   If they rise, we’re fucked.

   Something tells me we’re fucked.

4. It seems likely to me that interest rates are not going to come down substantially from here, certainly not to where they were.

   But the least few pay rises I’ve had HAVE been really good, and a good chunk higher than inflation, so at least I’m catching up again. 

5. You know who the papers report to when they report “real incomes are going up” as miserable news for the investment classes

   Yeah no shit the people who passively extract value from workers all get a headache over the thought that workers are keeping more of what they produce for their employer

   Why that should be the point of view our media prioritise however, that is a different question

6. What headache? Wages are only rising to cover the basics.

7. People get higher wages, people have more disposable income. Why is that a headache for the BOE?

8. So when the top 1% make money hand over fist at the expense of the rest of us, that’s just fine but when the rest of us finally see real term wage growth that’s a bad thing?

   For reference the Standard is majority owned by Evgeny Lebedev, Lord of Siberia (thanks Boris) with a minority stake owned by the Daily Mail group. Makes sense people like that pushing the line that your wages going up is a bad thing.

9. Bye bye Triple Lock State pension increases soon methinks. It’ll be means tested by the time I can draw it.

10. Why can’t wages rise? Because they don’t want us to not have to borrow?

11. Who is actually getting these rises? How do I access this?

12. The serfs are getting too much money. Will someone please think of big business!

13. Oh no, wages going up are a bad thing stories again?

    Wages going up are a good thing for stimulating a flat economy and bringing more money into the economy.

    If there are effects on inflation either (a) stop the price gouging that’s been happening for the past 5 years [prices go up because of disaster a, but never come down, even when disaster a is no longer having an effect), or stop doing so much QE to force interest rates lower than they’ve historically been (4-5% on any savings account was the *norm* prior to 2008).

    The response shouldn’t be to turn around and say “wages need to stagnate or go down” – that’s a failure of monetary policy.

14. When the MSM classify anything getting better for the proletariat as a headache.

15. Ok, hear me out, I know this a crazy thought, but: Could it be possible that having a global financial system that’s threatened if the vast majority of humans get enough to survive well, means it isn’t a good system to have? I know, I know, I’m nuts, it’s inevitable, etc etc.

16. “People getting paid more is a problem” is a fucking wild take.

17. They can’t have the peasants earning a few quid more. Quick put up interest rates. Smash them back down.

18. Wait, so the disastrous new government and budget that were going to tank salaries… actually came with the highest raise in the last few years?

    And that’s also horrible according to these guys?

19. Damn all these articles about wages growing being bad, wonder who is sponsoring them.

    We deffo get paid too much guys, we have to much of a good thing, wages growing? Bad. We are a high wage economy, wages should go down /s.

20. [removed]

21. What a dumb system where wages increases is somehow “a headache” record profits isn’t a headache

22. Y’all are getting wage increases?

    Joking aside, it honestly makes me annoyed that after so many years of pay stagnation, increases in incomes are being reported as negative news. Probably because it affects the bottom line of those who own the papers.

23. I’m no economist but I think the concern is not wage growth in itself but the spike of wage growth, as that can drive a spike of inflation and potentially trigger another volatile wage vs inflation spiral.

    Also if inflation tracks that wage growth spike then anyone who wasn’t part of the spike experiences a real terms wage cut – but suppose that may always be the case? Ifk

24. Quick, quick, Bank of England!!… The paupers might actually be getting paid! … Better import some more cheap labor before this gets out of hand!

25. Not mine. Working for a privately owned IT company, no pay rise for last two years, no pay rise expected this year.

    “Tough times, tough trading conditions, NI increase etc”.

    Company still makes a profit of course.

26. I wish I saw some of that. Who’s getting such raises

27. Why is that a shock when minimum wages keeps being increased by 5%+

    Wage stagnation has led to far too many people paid around this level so their only wage increases are from NMW being increased.

    I would wager that those on a bit more than NMW are not seeing 5.6% wage growth without hopping jobs.

28. Who is it that’s getting all these 5.6% rises? It sure as hell isn’t me!

29. I’m not getting 5.6%, I’ve got a real terms wage cut. And even then, 5.6% of nothing is still nothing for the 70% of us who are actually getting nothing, and paying 10% more for essentials. Fuck me, isn’t there a better way to measure wage increases?

30. Interest rates are priced into absolutely every good and service. Cutting interest rates would do a great deal to reduce overheads for absolutely everyone, so people would be less inclined to push for higher wages. The government wouldn’t need to raise taxes so high because the interest on debt would be lower.

    Just like the BOE took too long to increase interest rates, they’re taking wat too long to cut them.

31. I think it’s just time they accepted an inflationary target of 2 or 3% is more acceptable, given the current state of the world economy

32. The Bank of England doesn’t know its arse from its elbow.

33. Still way down on where we would have been, if not for austerity and Brexit. Still a real terms decrease compared to 2008 for most people.

34. Figures are probably messed up by my redundancy payment

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