Pay Talks are coming, what do you think?

Economic forecasts

The economy will grow on average by 1.4% in 2008, according to forecasts collated by the Treasury from around 40 forecasters. The range of forecasts for gross domestic product (GDP) is from 0.8% to 1.8% growth.

Inflation forecasts for the 4th quarter 2008, as measured by the Retail Prices Index, range from rises of 2.7% to 5.9% with a mid-point average of 4.7%.

Forecasts for average earnings growth range from 3.6% up to 5.2% in the 4th quarter 2008 with an average of 3.9%.

HM Treasury: www.hm-treasury.gov.uk/media/3/5/200808forcomp.pdf

Inflation

Rising food prices and fuel costs have forced inflation higher with food prices rising at the fastest rate for some 28 years. Under the Retail Prices Index (RPI), it rose to 5.0% in July from 4.6% the previous month ? the fourth consecutive monthly rise.

Under the Consumer Prices Index (CPI), which excludes housing costs, inflation was up to 4.4% in July from 3.8% in June.

Office for National Statistics: www.statistics.gov.uk/pdfdir/cpi0808.pdf

Detailed briefing: www.statistics.gov.uk/pdfdir/cpibrief0808.pdf

Workers victims not cause of inflation

Unite joint general secretary, Tony Woodley said in a Guardian newspaper Comment piece: "Workers are the victims of inflation not its cause. The Government must act to help those unable to cope. Our case for a windfall tax on the greedy oil companies and the utilities companies is unarguable. Its time to stop dithering and start acting.

The Government also needs to do more for the UK housing market by reducing or removing stamp duty and they should kickstart house building by announcing a massive increase in new council houses.

Unite: www.amicustheunion.org/default.aspx?page=8995


Rail fare rises

Passengers are to be hit by fare increases of up to 10%, according to rail drivers' union Aslef. Above-inflation increases have been standard since privatisation - but the current economic climate will ensure even heftier costs for commuters.

Each year Train Operating Companies are permitted to increase fares by RPI (based upon July's figure) plus 1%. That would cap the increase at 6% for this year. However Southeastern is currently permitted to increase its fares by RPI plus 3% (8% in total) to help pay for the new high-speed commuter service due to open in 2010.

ASLEF: www.aslef.org.uk/information/108095/union_condemns_10__fare_rises/