Average UK pay rises stall at 4% – less than half the inflation rate

Living costs face squeeze even though pay deals in three months to May are highest since 1992

Annual pay growth stalled at 4% in May, leaving most workers with a rise in earnings worth less than half the 9% increase in prices.

Figures from XpertHR, a pay and personnel data publisher, said employer pay deals for the three months to May failed to increase on April's median 4%, undermining concerns that workers would push for inflation-busting rises in earnings that could start a wage-price spiral.