Dusseldorf With the record inflation, the fear of a so-called wage-price spiral has returned. The term describes a mutual build-up of wage increases and price increases. The term is controversial among economists – the President of the German Institute for Economic Research (DIW), Marcel Fratzscher, even describes the wage-price spiral as a “false myth”.
In any case, there are indications that wages in many sectors are likely to rise significantly in the near future. A Handelsblatt survey of all 40 Dax companies shows that some companies have already increased their salary budgets due to high inflation. More could follow.
“In any case, it is a warning signal when large companies improve salaries because of inflation,” says Lazar Backovic, Handelsblatt team leader for career topics. Backovic conducted the poll and talks to host Anis Mičijević about the results in the podcast.
Two important salary rounds are due in the metal and electrical industry and in the public sector in the fall. The IG Metall districts have already spent eight percent more money than the target. “Restraint looks different,” says Backovic.
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The situation is exacerbated by the shortage of skilled workers, which, according to Backovic, is no longer limited to just a few sectors, but has become a widespread phenomenon.
Prime Minister Boris Johnson resigns
Also: British Prime Minister Boris Johnson has resigned as leader of his Conservative Party. With that, his days as prime minister are numbered. The move was preceded by a veritable cabinet revolt: several ministers had resigned in protest against Johnson’s leadership style, and Finance Minister Nadhim Zahawi, who had just been appointed by Johnson, even publicly called on the 58-year-old head of government to resign.
Handelsblatt correspondent Torsten Riecke talks about how things are going politically on the island in the podcast.
More: Wage-price spiral: The question is not “if” but “how long”.
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