You are here: Home - Household Bills - News -

Weekly earnings beat inflation for fourth month in a row

Written by:
Earnings continue to outpace inflation, rising 3.3% in the three months to October

This was the biggest rise since November 2008. The UK’s average salary is now £25,740 and the number of people in work hit 32.48m, a record high.

The latest inflation figures show the Consumer Prices index up 2.4% on a year ago.

However, unemployment increased slightly – by 20,000 to 1.38 million as the UK population continued to rise. This was driven by a rise in the number of unemployed men, which rose 27,000, while the number of unemployed women fell by 8,000.

Tom Stevenson, investment  director for Personal Investing at Fidelity International, said: “Finally British workers’ pay is starting to claw back some of the ground it’s given up during the ‘lost decade’ since the financial crisis. After yesterday’s weaker than expected GDP figures and more Brexit uncertainty after Theresa May’s last-minute decision to abort today’s Brexit vote, today’s wage growth figures provide UK workers with a little bit of pre-Christmas cheer. The latest data show wage growth ratcheting up to 3.3% both including and excluding bonuses. This means our pay packets continue to comfortably outstrip inflation.

However, he added that UK workers are not yet out of the woods and the recent steps forward could be reversed by the ongoing political and economic uncertainty: “Britain’s pay growth continues to lag our main competitors since the financial crisis.” Nevertheless, this ‘cocktail of concerns’ should ensure that the Bank of England has little incentive to hike interest rates any time soon, which is good news for borrowers if not for savers.


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.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week