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Unwinding the wage-price spiral
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Date：2025-04-16 18:20:08
Prices are up – again. The latest numbers from the CPI, or Consumer Price Index, show a 6.4% increase in prices over the last year. With wages also growing (at least before inflation) are we at risk of a wage-price spiral, where both wages and prices continue to rise in perpetuity?
We ask two economists whether this nightmare scenario is keeping them up at night — or if it's all just a scary bedtime story.
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