You are here: Home - Uncategorized -

Pay rises beating inflation – for now

Written by:

Pay deals for workers are increasing as employees demand higher rises to keep pace with inflation and maintain their saving and investment level, according to a recent survey.

Incomes Data Services (IDS) assessed the first wage settlements of 2007 – and January is regarded as a key month in establishing the year’s pay increases – at around 4%, up from 3% in the last quarter of 2006.

A spokesperson for IDS said: “In the face of rising inflation, employees are likely to demand higher basic pay increases to maintain their UK investment in the economy.”

IDS said that its survey was based on nine pay deals which have already been agreed this month. The median rise, which strips out the highest and lowest awards from the equation, was in the 4% area, which is higher than inflation and represents a significant UK investment by employers in their workers.

However, to set against the rises, the Consumer Price Index rose to a near-decade high of 2.7% in November 2006, and the Retail Price Index increased to 3.9%.

Some observers have expressed fears that higher wages will inevitably mean higher inflation as each element feeds the other and creates inflationary pressure. If this process accelerates then it is felt that further interest rate rises will be inevitable this year, to maintain the balance of UK saving and investment in the economy.



Tag Box




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... 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:
Estate agents ‘not worth the money’ say over-50s

Most homeowners aged 50 or over do not reckon that estate agents provide value for money, according to house sales website mousesale.