UK strikes looms as cost of living spirals

The UK economy is a threat from rising Oil and Food prices and as Inflation is expected to hit 4 percent by year end / early 2009 people are starting to take notice that their pay doesn't go quite as far as it once did. In The Times today they have reported of a new epidemic that is sweeping the UK.

The Return of the Strike.

Gordon Brown is still trying to fix public sector pay hikes at 2 percent and inflation is running at 4 percent is leading too,

"Hundreds of thousands of public sector workers are threatening to tear up agreements and demand higher pay as the cost of living surges. "

This is a major concern for the UK economy and the Bank of England as Mr King said that it was crucial that employees should not respond to the loss of their real spending power by bidding for more substantial pay increases. The rise in living costs has not yet fed through into wage demands, but policy makers fear that if this happened it could lead to a 1970s-style prices and wages spiral.

Mark Gibbons from G&G Recruitment - a Public Sector Recruitment Agency told IMS Foreign Exchange that they are defiantly seeing more IT Job hunters looking at higher paid jobs to combat Higher Prices after falling to secure a suitable pay rise in house.

This is going to have a ongoing issue for the GB Pound Currency so worth watching