13 Jul 2011

2011: The year of the big squeeze

My nominal wage cut in January (public sector worker) : 8.5%
My nominal wage cut next December (all workers) : 3.6%
My nominal wage cut: 8.5% + 3.6% = 12.1%

Inflation rate: 3.4%

Real wage decline: 12.1% + 3.4% = 15.5%

Increase in mortgage monthly installment due to increase in interest rates (so far): 5.1%

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