Inflation rises as wage growth slows

RPI inflation unexpectedly jumped to a huge 13.8% in February, driven largely by a rise in food prices. It is expected to fall later in the year (with forecasts predicting as low as 4.5% next month). By contrast, wage growth slowed slightly in January.

Average weekly earnings (regular pay) dropped to 6.1% after a recent high of 6.7% last November, with the public sector reaching 5.4% and the wholesale, retail and restaurant sectors suffering a big drop. In unionised workplaces, the median for pay rises for the lowest paid as recorded by LRD Payline also dropped slightly to 7.5% in February, with private sector settlements achieving that as a median, but public sector agreements lagging behind on 4.6%. The standard median rise was 6% across the board.