the biggest problem however is obviously how many more rate rises are likely to filter down from central banks, and want is going to happen with core inflation? and that is really what i have my ion today. you are not the what i have my ion today. you are not the only what i have my ion today. you are not the only one, - what i have my ion today. you are not the only one, because three or four minutes ago we were saying the same thing, that core consumer price inflation which excludes energy and food, is the thing to look at in terms of an indication of where things are going. what is happening on the front across europe and the uk? i happening on the front across europe and the uk? europe and the uk? i think it is a pretty europe and the uk? i think it is a pretty global europe and the uk? i think it. is a pretty global phenomenon. what is happening is obviously companies try to hold down prices for as long as they could both pandemic and they are now finding that they are un
striking, is demanding i2%. normal times in germany the demand is 6% and they settle for half, which is three, and three is roughly in line with the ecb, the european central bank inflation because if you add i% productivity growth is fine. if you demand 10.5 you would expect at least five. recent wage rises would suggest they could get seven this year and perhaps another for next year. that is at least what i expect. that is way too high for inflation, but we also have to take into account that workers have been suffering over the last two years, not just because inflation is high but they have been working through the pandemic, many of these public sector workers, so they do deserve some sort of compensation, so it is a tricky one, also for economists to gauge the impact. one, also for economists to gauge the impact. emma, and it is a problem gauge the impact. emma, and it is a problem public-sector - is a problem public sector workers are having right across the world, certainly
suddenly a solution. first disruption to the public, there is suddenly a solution. disruption to the public, there is suddenly a solution. first of all, i think we have suddenly a solution. first of all, i think we have got suddenly a solution. first of all, i think we have got a suddenly a solution. first of all, i think we have got a reasonable . suddenly a solution. first of all, i - think we have got a reasonable deal, one that is fair to nurses but fair, crucially to your point, to the public finances and fed to making sure that we stick to our goal of halving inflation. we couldn t have beenin halving inflation. we couldn t have been in a situation where we chased inflation through ever higher wage rises. if you look at the additional position of the rcn which was about i9%, position of the rcn which was about i9%, clearly that would have been chasing inflation. we got to a more sensible position, i think it is one that works for both of us and i very much hope it s notjus
BBCNEWS The Context with Christian Fraser June 4, 2024 21:30:15 archive.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from archive.org Daily Mail and Mail on Sunday newspapers.