So, yesterday I shared that Britain’s inflation rate had hit zero. For the lunatics, this is terrible! It’s news of impending doom! The idiocy being that the Brits or anyone else with a zero or negative inflation rate will quit buying stuff because they’ll look for lower prices in the future ….. or some such claptrap.
Well, today we have more news ……
Indeed, it jumped 2.9% from last year! Now pay close attention to what the AP writers had to say ….
LONDON (AP) — Pay growth in Britain is finally picking up, with wages rising 2.9 percent in the three months to July compared with a year earlier — the strongest increase since February 2009.
The Office of National Statistics reported Wednesday that pay including bonuses also rose by 2.9 percent. The increase in pay has long been the missing piece in Britain’s economic recovery and may pressure the Bank of England to raise interest rates despite low inflation.
Markit chief economist Chris Williamson says the bank “will remain ultra-cautious about tightening policy, but the upturn in pay growth certainly suggests that a first rate hike by the end of the year remains a distinct possibility.”
The unemployment rate was 5.5 percent, unchanged from three months earlier.
Well, I’d say the increase in pay is only catching up to an earlier decrease in unemployment. I don’t know how, exactly, the Brits calculate their unemployment, but, it it’s anything like the US, 5.5% is still too high.
Still, the indicators are the Brits, as individuals, are becoming more prosperous. They’ve zero inflation while their pay is rising. We’d better fix that by raising the interests rates, and quick!!!!!!!! ……. 😐