Wages stay above inflation

The median pay rise achieved on the lowest basic rate in the three months to January was 5.3%, and 5% for all other grades according to LRD Payline. Pay rises are still sliding from the summer peak of 8%, but remain higher than both measures of inflation, even as the UK slides into recession. RPI is now at 4.9%, down slightly on the previous month, while CPI has stayed steady at 4%. This means that some workers are now achieving some pay restoration. However, the speed of prices rises is still above the government target, and the cost of living crisis continues.

The latest official earnings figures show regular pay (excluding bonuses) went up by 6.2% over the year to December. The AWE measure of wage growth is up slightly on the previous month.