UK pay growth lags behind inflation; company insolvencies rise – as it happened
by Graeme Wearden from Economics | The Guardian on (#5W56P)
Rolling coverage of the latest economic and financial news
- Latest: Insolvencies rise in England and Wales
- Introduction: UK wage growth fell behind inflation
- Real basic pay (after inflation) shrank 0.8% over the year in Q4 2021
- But signs that pay picked up in January
- Unemployment rate at 4.1%; payrolls at new record
- Worrying rise in long-term sickness lifts economic inactivity
- Credibility challenge: Bank of England walks a tightrope on interest rates
In December alone, regular pay (excluding bonuses) shrank by 1.2% year-on-year once you account for inflation, the worst fall since 2014.
That shows that workers felt mounting cost of living pressures at the end of last year, due to rising prices for goods and services.
Working families need financial security. But they face a perfect cost-of-living storm.
Pay packets are plummeting in value as bills and prices sky-rocket.
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