Inflation at four decade high

RPI inflation is at 11.7% as the “cost of living crisis” deepens. Payline, which records actual pay settlements, shows earnings continue to grow at the same rate as the previous month, at 4.2% in May, but also that the public sector is lagging way behind on 2.5% – a factor which is fuelling talk of potential mass industrial action across the sector later in the year. Average weekly earnings (AWE) data for April mirrors our Payline figures in showing that the private sector is exhibiting growth at 4.8%, but the public sector is way behind on 1.8%. Construction at 5.8% and retail at 6.1% are slightly up on the average. However, the growth in wages overall continue to fall way behind prices.