UK wages are outstripping inflation for the first time in nearly two years, according to official figures.
The Office for National Statistics (ONS) said that regular earnings rose by a near record 7.8% in the three months to August and were 0.7% higher with Consumer Prices Index (CPI) inflation taken into account.
Revised figures from the ONS revealed that annual growth in regular pay excluding bonuses exceeded CPI inflation by 0.1% in the previous three months to July, having initially estimated flat real earnings growth.
It means that wages are now rising faster than prices for the first time since October 2021.
Chancellor Jeremy Hunt said: “It’s good news that inflation is falling and real wages are growing, so people have more money in their pockets.
“To keep this progress, we must stick to our plan to halve inflation.”
