RPI is historical data - i.e. prices have already gone up by that amount. Anything below RPI is a pay cut in real terms, so 3% is indeed a pay cut in real terms and thus should stick to no less than RPI - Aug08 or Sep08 figures, whichever we normally use - not latest
Too right, in fact despite low inflation and an economic downturn, prices that we, the consumer are paying, continue to increase. Petrol prices have risen to around 10p a litre more than some 3 months ago, and food prices continue to go up...
...The most popular cuts of lamb, pork and beef are up by as much as 59% in a year, putting enormous pressure on household budgets...
Meat prices rise - report dated 2nd March 2009.
It's in the Mirror - it must be true!
A pay award of last Augusts RPI (a reflection of the year up to August 2008) would in effect be a standard of living freeze at best, and a standard of living cut in some opinion.
August 2009 RPI+1 is what we should be aiming to get - we should be claiming initially for higher to ensure we get it...