Are you as worried as I am about the CPI increase. If inflation continues to rise, as forecast, then it may be up to 12%+ next year. This means that the annual increase could be 13% + 3.9%, which equals around 17%+.
I have assumed that the original formula was devised when interest rates were really low, in order to give the relevant firms some increase in income. However….I doubt that they thought that inflation would rise to its present level. In my opinion the relevant companies should now reconsider their position for next year and give undertakings that the present formula will NOT be applied without thought.
Opinions…………….
