[nomadking]

Originally Posted by jfman

https://www.theguardian.com/politics...line-inflation

Iain Duncan Smith (of all people!) calling for a rise in benefits to match the current rate of inflation with many claimants facing a real terms reduction in their income by 7%.

Then theoretically, in the future any increase should be less than inflation, as people will have already partially received the prior increase.
There is no right time to set the rate. Prices will always increase after whatever date you use.
How did people manage with double-digit inflation in the late 1970s? Especially with the Labour imposed below inflation pay rises.