Scottish Trades Union Congress (STUC) General Secretary Grahame Smith said "Today’s figures confirm what we have long stated; the pay rates of working people are not responsible for rising inflation. Rising fuel and food costs are, and it’s ordinary working people who have to bear the consequences. The low paid in particular are disproportionately affected by rising food and fuel costs and I have no doubt that an RPI of 4.5% will increase the determination of Scottish local government workers to secure more than the 2.5% pay increases currently on offer from their employers. “I also hope that the MPC avoid a knee jerk reaction on interest rates. They need to come down in the autumn or the economy could tailspin into deep recession. The Government should, as a matter of urgency, give the MPC a dual mandate to not only to consider the level of inflation but to also consider employment levels when setting interest rates as is the case in the United States."
ENDS
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