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This is not however reflected in salaries, with growth of just 1.8% predicted over the coming year, well below current inflation levels," the report said.
The increases are below current inflation levels.
But at current inflation levels, a one-percentage-point shift in interest rates changes the nominal cost of servicing debt — and the discount rate to be applied to future equity dividends — by up to a quarter.
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Brown explained that if the current inflation level remained the same for four years, a freeze would, by the same TfL calculations, cost £900m, not £1.9bn.
So combine low prices from abroad, increased competitiveness and an increase in the spare capacity of the employment sector and we have our current low inflation level.
But that assumes that their incomes would remain at current inflation-adjusted levels, which is surely incorrect.
The current inflation numbers are below the central banks safety level of 5%, but bank officials said the statistics are suppressed.
This is a rise of 1.8% from the current level, which is lower than the current inflation rate.
That, in turn, will boost current inflation.
Do you know your country's current inflation rate?
And she described the current inflation rate as "undesirably low".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com