Are we basically expecting average raises of around 1%?
If inflation is 4% and your salary increases only 1% a year, you are losing purchasing power every year. At that rate, the real value of your salary would fall by roughly 50% in about 24 years.
And that assumes the official 4% inflation figure actually reflects what employees are experiencing. When you look at housing, insurance, food, utilities and other everyday expenses, it often feels like prices are rising much faster.
At some point, a 1% "raise" is not really a raise. It is a pay cut in real terms.