Tag Archives: BankofEngland

“Inflation soars” OMG

Those broadsheets that wanted to “remain” are looking for every scrap of bad news following the Brexit vote. For many stories it seems fair enough, newspapers always have their own take on events. Surely though, it’s a step too far when the reporting of official statistics “facts” falls below a certain threshold of quality, deliberately. Such was some of the reporting of Tuesday’s inflation figures. More reporting of events (and less speculation), a bit of perspective (not focusing on the latest month’s figures) and looking at the detail of the release would be good.  Continue reading “Inflation soars” OMG

Advertisements

Earnings: true not fair

The weakness of earnings growth has dominated the debate about the recession and recovery in the last few years. “Average earnings” are lower in inflation-adjusted terms than at their recent peak in 2008. This does not (by and large) reflect falling wages for individuals. The average wage has grown more slowly because millions of low paid jobs have been created. Those low-paying jobs have dragged down the average while earnings for those in work have continued to rise relatively strongly. Poor explanation and inadequate “health warnings” have made it easy for economists, the media and observers to get a misleading impression of what’s been happening. When the underlying truth about the statistics fully emerges, there will be a rewriting of history and a realisation that the recession did not plunge so many people into a “cost of living crisis”. The “average” will also be seen for what it is: a dangerous concept when there is rapid structural change in what is being measured.  Continue reading Earnings: true not fair