Do you want to become a million pounds richer and do no extra work? Sounds like a dream, doesn't it? No, it isn't. All you have to do is work the next 23 years (until 2045) if you are earning the average UK salary. In the UK inflation is running at 5.5% and if this remains static until 2045, and assuming that your wages are index linked, they will have grown to £144,908.90 a year and you will have earned £1,101,707 more than if inflation was zero %. Just think about it? You will have earned over a million pounds more. The only downside is that the costs of everything will have gone up by exactly the same amount. So you will be no better off.
Now for the bad news. This year most public sector got 1.75% rather than 5.5%. Just imagine of that is what you get? Rather than £1,101,707 extra, you will have earned £249,677 more. If price inflation stays the same, you will be £851,031 worse off in real terms.
Why am I mentioning all of this? Well it is important, as you can see. And no one is talking about it. We have a government that does not mention bringing inflation down as a priority. We have a government that has actively encouraged inflation with its loose fiscal policies. We have a cost of living crisis that is hitting us hard now, but if wages don't keep pace will leave us all in poverty.
Inflation has been kept in check for a couple of decades now, but under Boris it is letting rip. When you find that you can't afford a holiday, a new car, a meal at your favourite restaurant, remember why and who's fault it is.