Wednesday, January 17, 2007
Prices outpacing pay
Posted by David Smith at 09:45 AM
Category: Thoughts and responses

For a proper comparison we will have to wait for the December average earnings figures but today's numbers, showing average earnings rising by 4.1%, including bonuses, was below the latest headline retail price inflation figure, 4.4%. Details here. The rest of the labour market data were mixed. Employment grew only slowly, and the employment rate fell - but unemployment fell on both official measures. Full release.

Comments

Notew though, how full time employment is declining (77,000 in the last three months). Only part time employment is increasing.

Posted by: HJ at January 17, 2007 07:36 PM

I think most people realise that prices have been rising far faster than pay in recent times, not just 0.3% faster! To me, this only goes to suggest further that wage inflation is about to take off...

Posted by: Josh at January 18, 2007 10:56 AM