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Deflation to have limited impact on pay round

With inflation set to turn negative during the busiest time of the year for pay bargaining, the MPC will be on red alert for any signs that deflation is having a knock-on effect on pay deals. Accordingly, this Focus lists the key settlements which are due to be concluded in the coming months. However, we are relatively sanguine about the risk of a wage-price deflationary spiral.

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