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0.7% Average Pay Rise Dwarfed By Inflation

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http://www.theguardian.com/business/2013/oct/16/uk-unemployment-average-pay-rise-inflation

Britain's nascent economic recovery is yet to be felt in workers' pockets, with wages rising at a paltry 0.7% in the year to August while prices grow almost four times faster.

Unemployment declined by 18,000 in the three months to August, to 2.49 million, according to the latest official snapshot of the labour market, and the number of people in work hit a fresh record high of 29.87 million people.

However, the strengthening in the labour market has not yet been reflected in the kind of pick-up in wage growth economists have been hoping for to translate the early signs of recovery into a solid upturn.

The Office for National Statistics said total pay rose at an annual rate of just 0.7% between June and August. Excluding bonuses, pay growth was marginally stronger, at just 0.8% – the weakest figure since comparable records began in 2001. Inflation was running at 2.7% in August.

These latest figures will help to underpin Labour's claims that while the economy may have "turned a corner" as the chancellor suggests, many ordinary families are still suffering a "cost of living crisis".

Excellent news, Osborne clearly needs to extend HTB to ensure more people can afford over inflated house prices.

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Yep - good that we can still afford to give pensioners inflation based "pay rises" too, and only just sub-inflation increases in other benefits - wonder if anyone is going to consider who will pay for this in a time of meagre annual pay increases....

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Well, it's no news to anyone here but if ever proof that it is housing costs causing the inflation:

In Ireland wages are growing faster than inflation.

Workers get boost as wages increase faster than inflation

WAGES are rising faster than inflation, providing some relief to hardpressed consumers.

The latest consumer price index shows prices rose just 0.2pc in the last year – whereas wages have risen by 1pc.

And Davy stockbrokers said that recent good news in the jobs market indicated a further pick-up in earnings this quarter "providing an additional boost to household incomes in the second half of the year".

However, there's little cause for celebration as the introduction of the property tax this summer is soaking up most of the increased earnings.

The new inflation figures from the Central Statistics Office show prices fell marginally by 0.1pc in September and are up just 0.2pc in the year. That means annual inflation has now levelled off at its lowest level in over three years.

But previously published CSO figures showed private sector wages rose 1pc in the second quarter of 2013 while public sector wages were up 1.3pc.

I just don't understand how CPI in Ireland can be lower ithan that of the UK andless it is house prices and rents in the UK that are causing it?!??

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The UK can print it's own currency.

Yes, but no but... I think you are right, the pound has devalued against the Euro over the last year.

2hfi16p.png

GBPEUR is now 1.18 (ish) , it was 1.22 (ish) giving the UK an impressive 3.25% devaluation against the Euro,

So now we know why the prices of food etc have gone up.

But not to worry, I have heard that house prices in London have gone up 10%. :lol:

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Blimey that is a weak number!

As per the inflation thread (where Freetrader posted the Sep'13 inflation stats ) price rises in essentials (food, energy, housing?) are very strong at +4%. So our standard of living will be falling. Labour are highlighting this but are focussing on energy prices. There's a bit more today on the foodbanks but ultimately this is a standard of living adjustment.

I suppose by temporarily flooding the economy with cheap credit they maybe about to hold this up. Will be interesting to watch certain retailer profit margins as I suspect they will be squeezed. Though every year they forecast a crap Christmas trading period, and then report record numbers in the new year.

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Feels like the 70s all over again. Prices spiraling out of control, unemployment rising and so on. They called it stagflation back then.

During that time my father developed an obsession with the the thermostat that lasted all his life. Even during the 1990s and early 2000s when energy and food were cheap and plentiful (before Mervyn the foolish began printing money) he would be constantly fiddling with it. They would also make crazy economies, massively lowering their living standards to save a couple of pence. Having incredibly shallow baths, eating rubbish food and so on.

Now that my generation has been ruined by nutty chancellors and crackpot BOE chiefs I can kind of understand it. Trying not to freeze with prices have been driven up to ridiculous levels by policies that were and are quite frankly insane I find myself adjusting the thermostat looking for a level that is just comfortable without costing a fortune. Things are set to keep getting worse, too.

Really wish we had some competent people in charge, instead of vote buying Keynesian morons repeating idiotic mistakes that have been made over and over again.

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During that time my father developed an obsession with the the thermostat that lasted all his life. Even during the 1990s and early 2000s when energy and food were cheap and plentiful (before Mervyn the foolish began printing money) he would be constantly fiddling with it. They would also make crazy economies, massively lowering their living standards to save a couple of pence. Having incredibly shallow baths, eating rubbish food and so on.

Now that my generation has been ruined by nutty chancellors and crackpot BOE chiefs I can kind of understand it.

I think when you sense that so much which affects your financial wellbeing is out of your control, its natural to exert a disproportionate amount of control over the things you can influence.

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I think when you sense that so much which affects your financial wellbeing is out of your control, its natural to exert a disproportionate amount of control over the things you can influence.

Very good point......I find people either go from one extreme to the other, meaning some compensate by cutting back hard to try and preserve their future or others frivolously carry on wasting and spending...tomorrow is another day....it is these types that sometimes then proportion blame on the others, wanting their cake, eating it and still request more, their rights. ;)

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The people in charge are very very competent, they just don't work for the good of the country but for themselves and the 1%. The rich have never been richer and their prime asset (property) went up by 1.5% last month. Wages have been suppressed and the workers are happy to submit to a life of debt servitude. And give the sheeple a bit of free money via the Royal Mail sell of and the opportunity to pay more for a house and they are happy. Things are set to keep getting better too ... for the 1%.

I can see some of Londons rich getting kidknapped sooner rather than later.

It's coming.

I work in W1 (not for much longer) and its been transformed in to a veritable playground for the worlds rich kids in the last few years.

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http://www.theguardian.com/business/2013/oct/16/uk-unemployment-average-pay-rise-inflation

Excellent news, Osborne clearly needs to extend HTB to ensure more people can afford over inflated house prices.

0.7 %

On the other hand they used to say "House prices always go up because earning go up". Were are house prices going to go with increases in earnings of this magnitude.

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