Not really - wages usually get renegotiated at least annually, and frequently go up faster than inflation.
All inflation does is set a cap on real pay decrease. Since very few businesses will decrease pay, then a 4% inflation environment means Bob who didn't get a rise this year effectively gets a 4% pay cut in real terms.
All inflation does is set a cap on real pay decrease. Since very few businesses will decrease pay, then a 4% inflation environment means Bob who didn't get a rise this year effectively gets a 4% pay cut in real terms.