wage price spiral?

last month's cpi was 5%, which was the highest in some time. it co-incided with the renewal of most inflation-linked contracts, which includes mine. so i got a 5% pay rise in a falling inflation environment.

so it is true that there is some price rigidity in the market and wages and prices don't adjust perfectly. they should, but it's hard to make contracts contingent on future prices, unless we index it to some measure of future expected inflation.