Let me tell you what some other people say, though: 1  The EWGâs Skin Deep Database lists it as a 5-6 (or moderate hazard), but trying to find the studies they used for their rating proved difficult, and the ones I did find were the nebulous âborax or boric acidâ test studies.
1 This is so because, my nominal wages have increased by 10% while the average price level (CPI) has increased by only 5%. 2  Thus today (in 2010) with my higher nominal wage ($1100.00) I can buy more than I could buy last year.
If a labor union makes a long-term agreement for salary increases based on the projected inflation rate, then the real wage may actually decline if the inflation rate shifts up. The definition of the real wage is: real wage = nominal wage - inflation rate. For an example, assume the nominal wage increases at a 5% rate.