Now that inflation is higher, and likely to continue rising over the short and medium term, a key question is whether and how this might affect pay-setting decisions and negotiations. Increases in the cost of living are not the only influence on pay reviews – other factors like recruitment, retention and staff motivation are probably more important – but it has been a long time since inflation loomed as large in pay planning considerations as it is currently and so the relationship between the two is well worth considering.
