Financial Times FT.com

Inflation driven by potatoes

By Norma Cohen

Published: January 10 2008 01:44 | Last updated: January 10 2008 01:44

If the government’s object in limiting public sector pay rises is to put a brake on inflation, it is unlikely to have the desired effect, according to economists and remuneration experts.

“They [public sector pay rises] have nothing to do with inflation,” says Stephen Nickell, head of Nuffield College, Oxford and a specialist in labour economics.

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