Pay deals steady as inflation falls again

The median pay rise achieved on all on pay rates in the three months to May was 5% according to LRD Payline. Still above inflation, which means some workers are achieving much-needed pay restoration.

RPI, the measure of prices growth preferred by unions has fallen to 3%, down 0.3% on the previous month, whilst CPI, the government-preferred measure has fallen to 2% (Bank of England's target rate). However, interest rates remain high.

Official figures on earnings (rather than deals) show regular pay stayed steady at 6% over the year to March. The AWE also shows public sector pay growth at 6.1% slightly ahead of the private sector at 5.7% but this is after years of lagging behind. Construction at 2.9% may be a sign of a struggling economy.