Baggette + Co. organisation logo.

Wage growth hit by higher inflation

,

The amount of money workers are taking home continues to fall as inflation takes its toll, official figures show.

Average earnings fell in real terms by 0.6% in three months to April, compared with the same period last year.

Before inflation, earnings rose by 1.7% excluding bonuses and were up 2.1% including bonuses, according to the Office for National Statistics.

Unemployment fell by 50,000 to 1.53 million in the three months to April – the lowest since records began in 1975.

The number of people in work hit a new high of 74.8% – the best since records began in 1971.

But the biggest issue will be the falling wages, especially since the ONS revealed on Tuesday that inflation rose to 2.9% in May.

The figures wiped out sterling’s gains against the dollar on Wednesday and analysts warned that future growth could be hit.


Baggette & Company Wealth Management Limited is registered in England & Wales no. 7138035. Registered Office at North House, Braeside Business Park, Sterte Avenue West, Poole, Dorset, BH15 2BX. Baggette & Company Wealth Management Limited is authorised and regulated by the Financial Conduct Authority no. 522193. The Financial Conduct Authority does not regulate Tax planning, Estate planning, Inheritance Tax Planning or Trusts and Will writing.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.

Articles on this website are offered only for general informational and educational purposes. They are not offered as and do not constitute financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.