Did your wages increase by 3.5% last year?
Did you get a pay rise of 3.6% in 2003-2004? And another pay rise of 3.5% for 2004-2005? Apparently the authorities think we all did!
Today's news reported that the price hike for transport fares will be capped at 1.7%.
Apparently this 1.7% is calculated by a year-old adjustment formula expressed mathematically as
0.5 (CPI) + 0.5(WI) - 0.3 = fare hike in %
where CPI is the change in Consumer Price Index (in simpler terms inflation), WI is the change in average wages and the third element is the productivity gain of transport companies, fixed at 0.3% until the next review in 2008.
Hence this year's 1.7% cap is dervied thus :
0.5(0.5) + 0.5(3.5) - 0.3 = 1.7%
The CPI for 2004-2005 was 0.5%
Wage Change was 3.5%
Last year's 2.4% rise in transport fare was derived as
0.5(1.7) + 0.5(3.6) - 0.3 = 2.4%
CPI for 2003-2004 was 1.7%
Wage Change was 3.6%
Now I'm just thinking, how many people have had a WAGE INCREASE of 3.6% for 2003-2004 and an increase of 3.5% for 2004-2005? How many?
Man that's a WAGE INCREASE of 7.1% over 2 years! I certainly didn't get such a pay rise. Did you? Last I heard the problem was getting people jobs much less WAGE INCREASES!!!
How do they come up with such figures? It doesn't seem to reflect reality if you ask me!