Inflation lower than expected, but wages aren’t keeping up
Posted July 22, 2011 7:38 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Inflation numbers are out for the month of June. At 3.1 per cent, they’re lower than expected and down from the increase recorded in May.
While that may be a silver lining for most people, wages still aren’t keeping up. The increasing gap between wages and the cost of living could lead to serious disruption in the months and years ahead, explains SFU consumer affairs specialist Lindsay Meredith:
“Basically, you set the stage for what we call wage-price spiral inflation. Look, the prices are taking off like a rocket. Pretty soon, you’ll see all kinds of unions making all kinds of demands because a lot of people are going to be trying to catch up.”
“I think.. [there’s] simply going to be a lot of labour unrest and it’s going to result in a whole pile of strikes,” he adds.
BC teachers are planning job action in the fall unless a new deal is reached over the summer. Canada Post workers are angry and vowing to keep fighting, despite being legislated back to work a few weeks ago.
