“Andrew Bailey has raised ministers’ eyebrows for warning of “apocalyptic” food shortages as record wage growth raises fears that a dangerous inflationary spiral is taking hold in the economy.
Brandon Lewis, the Northern Ireland Secretary, expressed “surprise” at the Bank of England Governor’s comments about rising costs caused by the war in Ukraine blocking exports of wheat and cooking oils.
“I was surprised to see that particular turn of phrase, I have to say,” Mr Lewis told BBC Breakfast.
“But the Bank of England is independent, they will have their view of their assessment, their economic view of where things are and where things are going.”
It came as new data from the Office for National Statistics showed pay packets jumped almost 10pc in March, helping workers keep up with the cost of living, but also risking making inflation worse.
In February, Mr Bailey urged workers not to ask for a big pay rise this year, warning that “moderation” of wage rises was needed to avoid further overheating the economy.
His comments were in contrast to Boris Johnson, who pledged at the Conservative Party conference last October to make Britain a “high-wage” economy.
The ONS said earnings in March shot up by 9.9pc on the year, with bonuses in the finance and construction industries helping pay packets keep up with the cost of living.
That is the sharpest single-month jump on records dating back to 2001. By contrast inflation is at a 30-year high of 7pc.
It comes after Andrew Bailey, the Governor of the Bank of England, warned of “second-round effects” from inflation, when a wave of price rises such as the energy bills shock feeds through the rest of the economy with higher wages and so further price rises in turn.”
Wage growth? We can’t have that
Such fucking nonsense that increasing wages = automatically increasing prices across the board.
It only works like that maths if we accept that all companies must continue to increase profit at all times under pain of bankruptcy.
Wait, are peoples wages going up? I feel left out.
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Article text
“Andrew Bailey has raised ministers’ eyebrows for warning of “apocalyptic” food shortages as record wage growth raises fears that a dangerous inflationary spiral is taking hold in the economy.
Brandon Lewis, the Northern Ireland Secretary, expressed “surprise” at the Bank of England Governor’s comments about rising costs caused by the war in Ukraine blocking exports of wheat and cooking oils.
“I was surprised to see that particular turn of phrase, I have to say,” Mr Lewis told BBC Breakfast.
“But the Bank of England is independent, they will have their view of their assessment, their economic view of where things are and where things are going.”
It came as new data from the Office for National Statistics showed pay packets jumped almost 10pc in March, helping workers keep up with the cost of living, but also risking making inflation worse.
In February, Mr Bailey urged workers not to ask for a big pay rise this year, warning that “moderation” of wage rises was needed to avoid further overheating the economy.
His comments were in contrast to Boris Johnson, who pledged at the Conservative Party conference last October to make Britain a “high-wage” economy.
The ONS said earnings in March shot up by 9.9pc on the year, with bonuses in the finance and construction industries helping pay packets keep up with the cost of living.
That is the sharpest single-month jump on records dating back to 2001. By contrast inflation is at a 30-year high of 7pc.
It comes after Andrew Bailey, the Governor of the Bank of England, warned of “second-round effects” from inflation, when a wave of price rises such as the energy bills shock feeds through the rest of the economy with higher wages and so further price rises in turn.”
Wage growth? We can’t have that
Such fucking nonsense that increasing wages = automatically increasing prices across the board.
It only works like that maths if we accept that all companies must continue to increase profit at all times under pain of bankruptcy.
Wait, are peoples wages going up? I feel left out.