Inflation hits pay rises


With retail price inflation rising to its highest level for two-and-a half years, pay increases have fallen behind in real terms.


In the three months to December, LRD Payline’s midpoint increase on the lowest basic rate in collectively agreed settlements was 2.3%. However, the increase in the annual rate of inflation under the Retail Prices Index (RPI) was 2.5%. That means settlements lost out in real terms by 0.2 percentage points.


For pay analyst XpertHR, the median rise for the whole economy was 1.9%, making the loss in real terms even greater.

https://www.ons.gov.uk/economy/inflationandpriceindices

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