Opinion
Just blaming wage growth for inflation is misleading and dangerous
The UK inflation debate now focuses excessively on wage-push inflation, where providers of goods and services pass on higher wage costs to consumers. This is unfortunate.
Mohamed El-ErianGlobal financial commentatorExcessive wage increases are increasingly being framed as the sole cause of a UK inflation problem that is causing mortgage difficulties and forcing families to make tough choices with their shrinking purchasing power.
While this message gained traction recently due to the latest wage data and inflation warnings from the UK chancellor and the Bank of England, it is partial and can easily mislead.
Financial Times
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