UK Freezing public sector pay amid deflation

I still don’t understand economics: it’s good that way, methinks. Many economists seem to be in the same league as sect leaders and dodgy television mystics in the accuracy of their profecies and analytical rigour.

Apparently the British government wants to freeze public sector pay or only rise it minimally, because the UK is in deflation. It doesn’t make sense to me. Surely, public sector workers can be paid the promised pay rises, so they can consume and halt the dangers of a steep deflation? Public sector workers have more secure jobs, therefore they are likely to spend more in these times, and especially when things are cheaper.


Ah, the consumer price index went up, though retail price index is at 0%. This may have to do with the change in the basket of goods used to calculate CPI. So much for the economists’ crystal ball.