Thursday, January 18, 2007
Inflation leads to fall in real wages for the first time since Labour came to power
Official figures are now showing that real wages have declined for the first time since Labour came to power. The shadow chancellor George Osborne said, "Gordon Brown tries to pretend that everything is rosy in the economy, but rising prices mean that families’ real living standards are falling." Average wage rises grew by 3.6% during the period measured while RPI was at 3.9. Recent RPI sprinted ahead to 4.4% which will no doubt sqeeze the the consumer further.