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mpc: 20 Pay pressures remained muted. Some commentators had noted that settlements were often linked to RPI inflation ­ which had been rising since the start of 2004. But according to settlements information available to the Bank, the twelve-month average of settlements had been broadly flat throughout 2004, and there were few signs that it had moved closely with RPI over the recent past. The Committee noted that there had been a small rise in the shorter-run three-month measure of settlements in the private sector in October, but it was too soon to place much weight on that. Three-month on three-month growth in regular pay, a measure of current pay pressures, had also risen slightly in September. The growth in the purchasing power of post-tax earnings had strengthened over the past year, which might have helped to reduce pressure on settlements.