Gap between wages and rising prices widens


RPI is at 12.3% as the “cost of living crisis” looks set to cause lasting damage to living standards unless drastic action is taken. Payline, which records actual pay settlements, shows earnings growth at 4.9% in July. This figure masks some above-inflation settlements where unions have pushed for more – although such rises are not consistent across the board. Average weekly earnings (AWE) data for June shows a slightly higher rise at 5%, with the private sector ahead overall on 5.4% and the public sector lagging way behind on 1.9%. Construction, at 5.6% and retail at 7.1%, continue to do better; however, in real terms, wages overall are falling in value.