Wages grew at a record annual pace in the April to June period, according to new official figures.
Regular pay rose by 7.8%, the highest annual growth rate since comparable records began in 2001.
The stronger-than-expected increase has fuelled forecasts the Bank of England will be forced to raise interest rates again to calm inflation.
The stronger-than-expected increase has fuelled forecasts the Bank of England will be forced to raise interest rates again to calm inflation.
Darren Morgan, director of economic statistics at the Office for National Statistics, which released the wage and employment data, said the latest figures suggested real pay growth, which takes into account the rate of inflation, is “recovering”.
Prime Minister Rishi Sunak said there was “light at the end of the tunnel” for the millions struggling with the cost of living.
However, wage growth is not quite outstripping the pace of price rises. Mr Morgan told the BBC’s Today programme that real pay growth was “still falling a little”, dropping by 0.6%.
Labour’s shadow work and pensions secretary Jonathan Ashworth said: “These figures confirm once again that the Tories are failing working people and businesses across Britain.”
New inflation figures are due out on Wednesday and analysts expect them to show price growth slowed again during July to between 6.7% and 7%.
Wages grew at a record annual pace in the April to June period, according to new official figures.
The stronger-than-expected increase has fuelled forecasts the Bank of England will be forced to raise interest rates again to calm inflation.
Regular pay rose by 7.8%, the highest annual growth rate since comparable records began in 2001.
Darren Morgan, director of economic statistics at the Office for National Statistics, which released the wage and employment data, said the latest figures suggested real pay growth, which takes into account the rate of inflation, is “recovering”.
The stronger-than-expected increase has fuelled forecasts the Bank of England will be forced to raise interest rates again to calm inflation.
The stronger-than-expected increase has fuelled forecasts the Bank of England will be forced to raise interest rates again to calm inflation.
Darren Morgan, director of economic statistics at the Office for National Statistics, which released the wage and employment data, said the latest figures suggested real pay growth, which takes into account the rate of inflation, is “recovering”.
Prime Minister Rishi Sunak said there was “light at the end of the tunnel” for the millions struggling with the cost of living.
However, wage growth is not quite outstripping the pace of price rises. Mr Morgan told the BBC’s Today programme that real pay growth was “still falling a little”, dropping by 0.6%.
Labour’s shadow work and pensions secretary Jonathan Ashworth said: “These figures confirm once again that the Tories are failing working people and businesses across Britain.”
New inflation figures are due out on Wednesday and analysts expect them to show price growth slowed again during July to between 6.7% and 7%.
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