Thursday, August 10, 2006

Inflation to be hit by Tuition Fees

For me there seems something quite circular about the fact that Tuition Fees will probably have an impact upon inflation. [See BoE Govenors opening remarks]
The estimate is that they could affect inflation by upto 0.25%. If interest rates are increased to dampen the inflationary pressures then my mortgage will increase. But university pay is not index linked for the next two years, so if inflation exceeds the previously agreed pay awards, then university staff will effectively lose out, even though their institutions will have benefitted from the increase in Tuition Fees...

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