Real earnings fall by 0.2%

UK earnings grew by 2.5% in October which lagged behind an inflation rate of 3.1% registered in November.

Real earnings fall by 0.2%

Real earnings fell by 0.2% in the year to October as wage growth failed to keep up with inflation for the seventh month in a row, Office for National Statistics data shows.

UK earnings grew by 2.3% in the three months to October year-on-year, lagging behind an inflation rate of 3.1% in November.

Ruth Gregory, UK economist at Capital Economics, said: “It seems likely that inflation is at its peak at the moment.

“We’re expecting inflation to fall back next year which should ease the stress on household finances in the New Year.

“We did see a pickup of wage growth this morning and surveys of staff salaries suggest pay should pick up in the coming months.”

Wage growth (excluding bonuses) rose from 2.2% in September to 2.3% in October.

Meanwhile the inflation rate rose from 3% in September and October to 3.1% in November.