Real wages fall by 1% as pay fails to keep up with inflation

Business

Wage growth in the UK struggled to keep up with increasing inflation between December 2021 and February 2022, according to the Office for National Statistics (ONS).

Average weekly pay packets across Britain fell in December by 1%, reflecting how wages are struggling to keep up with the rising cost of living.

Regular wages, excluding bonuses, increased by 4% between December 2021 and February 2022, but when adjusted for inflation actually dropped compared with the year before.

The annual rate of inflation hit a new 30-year-high of 6.2% in February and the Bank of England is expecting it to reach 8% this year, which will only worsen the hit to workers.

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