Wage growth is above inflation

The median pay rise achieved across all grades in the three months to December was 5.5% according to LRD Payline. This a drop from the 8% peak seen last summer but there are also fewer deals done towards the end of the year. Wage growth is now above inflation rates, which are 5.2% RPI/4% CPI. This means that some groups are now achieving a little pay restoration. However, with inflation staying constant for the month, the cost of living crisis rolls on and there will be more battles ahead.

The latest official earnings figures show regular pay (excludes bonuses) went up by 5.9% over the year to November. The AWE measure of wage growth is down slightly on the previous month and remains varied across industrial sectors.