Public Pay Talks - see mod warning post 4293

Nope, not unless there's deflation. A slower rate of price increases is still price increases.

I’m sorry, I thought I had explained it in the simplest terms I could. Rates of inflation/deflation are economic terms used to measure the changes in the prices of goods when compared to the same period last year. Disinflation on the other hand is a slowing in the rate of inflation, often temporary. So inflation may be 8% this month, but 7% next month, that is not deflation as goods are still higher than they were at the same time 12 months ago (Inflation remained unchanged June/July 21). So if your wage is increased to match inflation this month and disinflation occurs, your money is worth more next month than this month, using Fred’s logic, you get an effective pay rise even though you don’t get an actual pay rise.

Nonsense.

So (chance would be a fine thing) in July I get a pay increase which matches the rate of price increases in the last year. Then in August the 12 month year-on-year rate of inflation is less, so what? It doesn't mean that prices fell in August, just that they increased less than they did in July of last year (which is now out of the 12-month year on year figure). They still went up, just less than they had been, but any price increase is on top of the previous increases. This is what you are ignoring.

Of course in reality pay deals don't match inflation and there's a huge lag between price rises and pay rises so workers end up worse off on the double.

7% over two years is waaaay behind inflation. Also there is a huge number of people at the top of their pay scales, no increments for them.

So what would us Public Servants settle for?

15 percent over 2 years? Strike if it doesn't happen?

I assume it will be pushed back so when it comes to action them, we'll be in economic crisis and it can be stalled again. Isn't that what usually happens. Lag just enough so its never appropriate to act on it.