Pay growth fails to keep pace with cost of livingon April 12, 2022 at 6:38 am

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Basic pay is “falling noticeably” when accounting for price rises, the Office for National Statistics says.

Woman making coffee

Image source, Getty Images

UK wage growth failed to keep up with the rising cost of living between December and February, according to new data.

Wages rose, but when taking rising prices into account, regular pay showed a 1% fall from a year earlier.

“Basic pay is now falling noticeably in real terms,” said Darren Morgan from the Office for National Statistics.

Latest inflation figures show the cost of living is rising at its fastest pace for 30 years.

Recent figures showed inflation reached 6.2% in February and new data, due out on Wednesday, is forecast to show a further rise in March.

The Office for National Statistics (ONS) said that the average wage, excluding bonuses, rose by 4% in the three months to February compared with a year earlier.

The data revealed a sharp contrast in pay growth between the public and private sectors. Average total pay growth for the private sector was 6.2% but just 1.9% for those in the public sector.

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