EMPLOYERS say the rising cost of living is providing fuel for wage increase demands – but that asking for bigger salaries will not help anyone in the long run.
Inflation, particularly the upward pressure on wages, is one of the key concerns identified in Derbyshire and Nottinghamshire Chamber's Quarterly Economic Survey.
Chief executive of the Chamber, George Cowcher, said: "Though it's tempting for work
ers to seek higher wage claims in order to keep up with the cost of living, inevitably these will simply exacerbate the problem. Business is making less profit and Alistair Darling has indicated he is aware there is no more room to increase taxes.
"Everyone is feeling the pinch, but the soaring cost of oil and raw materials, and the knock-on effect on almost every aspect of the economy, is beyond the control of Government or private sector employers."
News that the Government plans to overhaul its rules on borrowing could pave the way for higher wage claims in the public sector, and potentially more industrial unrest. Economists fear that higher public sector wage deals could trigger higher inflation and interest rates.
According to the Office for National Statistics, consumer price inflation jumped from 3.3 to 3.8 per cent in May, the highest level for over ten years, largely due to rises in the price of food and fuel.
Inflation on the broader retail price index measure, which includes housing costs, rose from 4.3 per cent to 4.6 per cent.
The full article contains 252 words and appears in Buxton Advertiser newspaper.
