Johnson warns of ‘wage-price spiral’ if pay packets rise with inflation

The video discusses the economic measures taken during the pandemic, highlighting the UK's rapid vaccine rollout and economic recovery. It addresses the limitations of government support in shielding everyone from global cost increases and emphasizes the need for targeted aid. The speaker warns against inflationary pressures and the risks of excessive borrowing. The video also explores the dynamics of wage and price increases, cautioning against a wage-price spiral and the potential need for higher interest rates to control inflation.

What are the realities that governments face when dealing with inflationary pressures?

What are the potential consequences of a wage price spiral?