Inflation drives fastest fall in real pay on record

Pay has fallen further behind the rising cost of living, according the latest official data.

While average wages by rose by 4.7% between April and June, that was outpaced by inflation – or price rises – which rose nearly twice as quickly.

As a result, the “real value” of pay fell by 3%, according to the Office for National Statistics.

Household budgets are being hit by soaring energy bills as well as higher food and fuel costs.

The rise in prices has fuelled the UK inflation rate to a 40-year high and it is expected to rise further. The gap between pay growth and inflation is the biggest since records began more than 20 years ago.

Darren Morgan, director of economic statistics at the ONS said the “real value” of pay was continuing to fall. “Excluding bonuses, it is still dropping faster than at any time since comparable records began in 2001,” he said.

The data also highlighted a gap between public and private sector wage growth.

Private sector wages grew by 5.9% while those…

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This article was written by and originally published on www.bbc.co.uk