Tuesday, September 17, 2013
A little less spin..
Yet again inflation has outpaced wages as figures realeased today by the Office for National Statistics show the Consumer Price Index at 2.7 per cent. Despite the fact that CPI inflation is down from Julyâ€™s figure of 2.8 per cent, the figure is still well above the governmentâ€™s 2 per cent target â€“ as well as above increases in average pay. The Retail Price Index (RPI) also rose 3.3 per cent in August, an increase of 0.2 per cent after rising by 3.1 per cent in July. Wages in the UK have seen one of the largest falls in the European Union during the economic downturn. Hourly wages have fallen 5.5 per cent since mid-2010 once inflation is factored in. Average pay (excluding bonuses) rose by just 1.1 per cent over the three months to June 2013 compared to a year earlier.