Regular pay is increasing at the fastest rate in more than 20 years, but failing to keep up with rising prices.
Image source, Getty ImagesRegular pay has grown at the fastest rate in more than 20 years, but is still failing to keep up with rising prices, official figures show.
Pay, excluding bonuses, increased at an annual pace of 6.7% between October and December 2022, the Office for National Statistics (ONS) said.
The ONS said the increase was the strongest growth seen outside of the Covid pandemic.
However, when adjusted for inflation, regular pay fell by 2.5%.
The gap between private and public sector pay continued, the ONS said, with private regular pay up 7.3% annually between October and December, compared with a 4.2% rise in the public sector.
But both figures are being outstripped by the rising cost of living, with inflation – the rate at which prices are rising – running at 10.5%.
The rise in energy and food prices has put a squeeze on household finances.
The ONS also said that 843,000 working days were lost to strike action in December, which was the highest number since November 2011.