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Inflation outstrips pay growth
The gap between inflation and earnings growth widened at the beginning of the year. Under the Retail Prices Index (RPI) inflation was 4.1% in January and February, but earnings growth was 3.8% in January and 3.6% in February. The March RPI figure was down to 3.8%.
Under the Consumer Prices Index (CPI), which excludes housing costs, the March inflation rate stayed at 2.5%.