Wages overtake inflation for the first time in nearly two years

Average pay growth in the UK has risen above inflation for the first time in nearly two years, signaling a potential easing of the cost of living crisis. Wages increased at an annual rate of 7.8% between June and August, exceeding the average inflation rate during the same period. While these figures indicate that wages are outpacing prices, they don’t necessarily reflect the experience of everyone, and there remains a significant gap between public and private sector pay. Wage growth for public sector employees reached 6.8% during the period, while private sector workers saw average pay rises of 8%.