Pay deals are expected to increase because of an expected rise in headline inflation, a report predicts today.
The cost of living is forecast to climb to 3.5 per cent over the next few months, setting a higher starting point for pay negotiations, says the report by pay analysts Incomes Data Services.
Head of pay services Alastair Hatchett said: "Our annual study of pay prospects for the coming year forecasts that higher inflation this autumn will have a strong impact on the pay bargaining in January 2005 and April 2005."
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