By Real wages fall as inflation continues to escalate
Recent data issued by the Office for National Statistics has shown that real wages fell by 1% between December 2021 and February 2022.
This comes amid the current cost-of-living crisis, as pay struggles to keep up with rapidly rising inflation.
The blow reflects a number of everyday price increases including hikes in national insurance contributions and fuel bills.
Speaking to Sky News, Darren Morgan, director of economic statistics at the Office for National Statistics (ONS), said: “While strong bonuses continue to mitigate the effects of rising prices on people’s total earnings, basic pay is now falling noticeably in real terms.”
Earlier this year, the annual rate of inflation hit a new 30-year-high of 6.2%.
According to the Bank of England, figures are expected to reach as high as 8% this year.
The Office for Budget Responsibility has warned that the situation is likely to leave households experiencing the biggest fall in real wages and therefore quality of life since records began in 1956.
Updates to follow.
