{"id":70808,"date":"2023-07-11T08:12:57","date_gmt":"2023-07-11T07:12:57","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=70808"},"modified":"2023-07-11T09:23:00","modified_gmt":"2023-07-11T08:23:00","slug":"our-chancellor-really-does-not-understand-inflation-but-nor-does-the-sun","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2023\/07\/11\/our-chancellor-really-does-not-understand-inflation-but-nor-does-the-sun\/","title":{"rendered":"Our Chancellor really does not understand inflation – but nor does the Sun"},"content":{"rendered":"

The right wing media, and even the Chancellor, are totally confused about how to report this morning\u2019s news from the Office for National Statistics on the latest wage data.<\/p>\n

The Sun\u2019s headline is:<\/p>\n

\"\"<\/p>\n

The angry AGAIN makes it sound as if this is terrible news - which of course is exactly what the Bank of England and the Chancellor want us to think it is.<\/p>\n

But then they have to admit:<\/p>\n

\"\" \"\"<\/p>\n

In other words, there was no real wage rise at all, which completely undermines the Bank of England\u2019s claim that it is wages that are driving inflation.<\/p>\n

For the record, price rises are driving inflation and it is profiteering and the increasing cost of borrowing that are driving them up, which the Sun fails to mention.<\/p>\n

They do however note:<\/p>\n

\"\"<\/p>\n

They add:<\/p>\n

\"\" \"\"<\/p>\n

Which is quite amusing because this really makes no sense whatsoever.<\/p>\n

Falling job vacancies implies reduced wage pressure, not an increase. People are taking jobs at the pay rate on offer is what the data implies. How that can be inflationary is hard to see, most especially when the whole purpose of raising rates is to reduce the number of employment opportunities in the economy by creating a recessionary environment, which is exactly what seems to be happening. But it might be a bit much for our Chancellor to get his head around that.<\/p>\n

But what is really interesting is that the right wing media has now lost the ability to frame what the Bank of England is doing precisely because it is so illogical that even they can\u2019t work it out.<\/p>\n","protected":false},"excerpt":{"rendered":"

The right wing media, and even the Chancellor, are totally confused about how to report this morning\u2019s news from the Office for National Statistics on
Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[96,35],"tags":[],"class_list":["post-70808","post","type-post","status-publish","format-standard","hentry","category-conservatives","category-economics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/70808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=70808"}],"version-history":[{"count":3,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/70808\/revisions"}],"predecessor-version":[{"id":70817,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/70808\/revisions\/70817"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=70808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=70808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=70808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}