Real wages are rising for the first time since 2007, says EY

As inflation rates fall, wages surge ahead of prices

Are you feeling any richer? Well you should be according to the latest economic forecast from the EY Item Club.

Due to the falling rate of inflation, UK workers should see an effective pay rise of 1.8% this year, and “steady rises thereafter”.

Since 2008, Britons have undergone a major decline in average earnings as prices had stayed high while wages hadn’t kept up.

During this period, average earnings fell by 8% across the UK, the biggest fall since records began in the mid-19th century.

But now the situation has reversed.

In January, the interest rate fell to the record low of 0.3%.

Meanwhile, average earnings rose by 2.1% in the three months to December since the same period a year earlier.

Now read

Social Bookmarks