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 - unchanged from August.
Inflation has again outpaced wages as figures realeased today by the Office for National Statistics for September show the Consumer Price Index at 2.7 per cent – unchanged from August.
The figure is well above the government’s 2 per cent target – as well as above increases in average pay.
The Retail Price Index (RPI) also rose 3.2 per cent in September, down from 3.3 per cent in August.
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.
The graph below shows CPI inflation since June 2009.
Commenting on today’s figures, Labour’s shadow economic secretary to the treasury Catherine McKinnell MP said that with prices still rising much faster than wages “the cost of living crisis under David Cameron continues”.
“After three damaging years of flatlining, working people are nearly £1,500 a year worse off under this Tory-led government,” she added.