If inflation exceeded 10% in Europe, North America or Australia there would be a HUUUUUUUUUUUGGGGGGGGGGGEEEEEEEEEE uproar and you can be sure that pay raises would be called for on a massive scale.
When inflation moves above 2-3% it results in direct moves by the governments and central banks. The US dollar is so low now primarily because of the lowering of rates in the US as they fought inflation (though now it has to do with liquidity).
German workers are calling for large wage increases due to higher food prices.
Finally, the exchange rate has moved so significantly in the last year or so that you can hardly consider it 'normal or average'. So, yes, I do expect the companies in this part of the world to make some changes to their pay scales and the governments to take action.
Last edited by Trader; 15th Mar 2008 at 08:47.