Pay deals strong as inflation drops

The median pay rise achieved on all pay rates in three months to April was 5%, according to LRD Payline. Pay growth is likely to remain above inflation for the next few months, as the National Living Wage uplift feeds into the figures. RPI, the measure preferred by unions has fallen to 3.3%, down 1% on the previous month, while CPI has fallen to 2.3%. Prices have not fallen, with housing costs still rising at above the headline rate.

For earnings (not deals), official figures show regular pay (excluding bonuses) stayed steady at 6% over the year to March. The AWE measure of wage growth shows public sector pay ahead at 6.8% but this may be because it lagged behind a year ago. Private sector growth is at 5.9% (down from its peak of 8.3%), manufacturing is at 6.8%, construction is lagging behind at 2.6%.