The government has issued a new warning to workers that they cannot expect wage increases to cope with rising living costs.
Chief Finance Minister Simon Clark said wage demands, which seek to match inflation, run the risk of creating a spiral in wages and prices since the 1970s, pushing store prices even higher.
His intervention came after the Bank of England’s inflation forecast was set to reach 11% in the autumn as it raised interest rates to 1.25%, the fifth straight increase.
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