wage-price spiral

Wage-Price Spiral

The phenomenon in which prices for goods and services rise, which causes employees to demand higher wages. This added expense on business causes higher prices, which leads to still higher wages, and so forth. The wage-price spiral is alternately described as a cause or a symptom of inflation, depending on one's economic philosophy.

wage-price spiral

see INFLATIONARY SPIRAL.
References in periodicals archive ?
But there is not a lot of evidence of a looming wage-price spiral and unless one starts to develop, the annual inflation rate should start coming down over the next few months as last year's drop in the value of the pound ceases to have an impact on import prices.
First, following the implementation of the Seventh Central Pay Commission (7th CPC) recommendations whether the economy will see a wage-price spiral and how this will ultimately affect the labour market in the services sector.
The reason is clear: By taking time to set the stage for liberalisation, governments hoped to limit the initial spike in price inflation, thereby avoiding a wage-price spiral and curbing capital flight.
To add further injury, uncontrolled increases in LMW over time-at the instigation, say, of populist activists and politicians-may trigger an upward wage-price spiral.
The MPC remains concerned about the risks of a wage-price spiral, should settlements well in excess of inflation and productivity growth become the economy-wide norm.
We could be closer to an inflationary wage-price spiral than the relatively high unemployment rate (6.
4% and inflation expectations remaining contained, there appears to be very little threat of a wage-price spiral in the UK.
In some cases, reforms to wage-setting mechanisms broke a wage-price spiral.
Their main focus appears to have been on property prices, yet they have also been keen not to see a wage-price spiral develop.
Private economists warned Thailand could face a wage-price spiral if Puea Thai followed through on all campaign pledges.
Nominal wages are deflated by the consumer expenditure deflator which gives some insight into the degree of pass-through of the oil price rise through consumer prices to wages, and the potential for a wage-price spiral that may need to be addressed by monetary authorities.
This is akin to a wage-price spiral, albeit in the early stages, but it can get out of hand if not addressed quickly enough.