You are here: Home - Investing -

Real income to grow next year

0
Written by:
17/09/2012
Households should see a rise in real incomes from next year on the back of slowing inflation and rising pay growth.

According to a report by the Centre for Economic and Business Research (CEBR), the rise in 2013 will be the first real increase since the onset of the financial crisis, though inflation will once again outstrip earnings as early as 2016.

Consumer Prices Index (CPI) inflation rose sharply between September 2009 and September 2011 to stand at 5.2%.

Despite a small rise between June and July this year, it has fallen steadily since then and now stands at 2.6%.

The CEBR said real levels of income would start to pick up as inflation fell further. The Bank of England expects CPI inflation to fall below its 2% target by the middle of next year.

The CEBR said middle and low-income families would benefit the most from the rise in real income.

Middle-income households would see incomes rise by 1% next year, with lower-income families seeing a rise of 1.5%, it said.

The richest households would see incomes rise by 0.7%.This is because of a drop in top executives’ pay and bonuses and the scaling back of some tax allowances.

 

 

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2205943-all-seing-eye
Monday newspaper round-up: CCB, Heathrow, BAE

China Construction Bank eyes up European counterparts; Boris bores aviation options; BAE's US operations could need stronger firewall

Close