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Inflation fall raises pay hopes

12:28 15 April 2014

Bank of England. Photot by Yui Mok/PA Wire

Bank of England. Photot by Yui Mok/PA Wire

Inflation fell for the sixth month in succession in March paving the way for an end to the prolonged squeeze on wages, official figures showed today.

The Consumer Prices Index (CPI) rate dropped to a new four-year low of 1.6%, from 1.7% in February, according to the Office for National Statistics (ONS).

It comes a day ahead of separate ONS labour market statistics which are expected to show that regular pay is rising at a rate of 1.8%, up from 1.3%.

CPI has not been lower since October 2009, when it stood at 1.5%. The latest fall in inflation was widely expected by economists.

It is likely to herald an end to a six-year period when pay growth has been lagging behind the rise in the cost of living, effectively shrinking workers’ spending power.

2 comments

  • I asked my newsagent whether he would accept GDP growth and inflation statistics for the EDP.He said he only cash would do.You try paying your bills with government statistics.No-one will take them.

    Report this comment

    Peter Watson

    Tuesday, April 15, 2014

  • There are lies, dammed lies, statistics and the ONS. Choose which one you believe.

    Report this comment

    "V"

    Tuesday, April 15, 2014

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