Pay rises outstripped by inflation

The latest inflation figures show that pay rises are being outstripped by inflation.

The ONS has released the inflation report for this month. It’s up again, although not as much as recent increases:

The Consumer Prices Index (CPI) annual inflation grew by 2.8% in February 2013, up from 2.7% in January. The change in the rate follows four consecutive months when it stood at 2.7%.

The upward pressure came mainly from increases in gas and electricity bills and from price changes for some recreational goods, motor fuels and air transport.

By comparison, wages are rising at an average of just 1.5 per cent.

Like this article? Sign up to Left Foot Forward's weekday email for the latest progressive news and comment - and support campaigning journalism by making a donation today.