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The gap between inflation and wages has now closed. The Office for National Statistics released figures this week showing that inflation, as measured using the Consumer Prices Index, grew by 1.6 per cent in the year to March. The average weekly wage, comparing December 2013 to February 2014, rose by 1.7 per cent. Figures of this sort are open to interpretation. But what is clear is that money is worth more now than at any time since the crash of 2008.

There remain problems, not least the issue of weak productivity growth which, so long as it remains sluggish, will…

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