Rise in price inflation not yet having impact on manufacturing pay settlements

Manufacturers have moved to calm fears of wage inflation after the Consumer Price Index (CPI) rose above 3% earlier this week.

The Bank of England is widely expected to increase interest rates to curb price inflation which is likely to increase pressure for employers to pay higher wages.

But manufacturers trade body the EEF insisted average pay settlements in March were consistent with those in January and February at 3%.

David Yeandle, deputy director of employment policy, said: “As pay settlements have been stable at 3% throughout the main settlement period for manufacturing companies, the Monetary Policy Committee should not be unduly concerned about rising pay pressures in this sector of the economy.”

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