UK pay rates up but still lagging behind price rises

LONDON – Official figures are showing wages in Britain creeping up but still lagging the rise in prices, meaning households continue to experience a real-terms pay cut as they prepare for Christmas.

The Office for National Statistics said Wednesday that average weekly earnings in the three months to end-October were 2.5 per cent higher than the year before when they include bonus payments, and up 2.3 per cent when bonuses are excluded.

Though up from the previous rates of 2.3 per cent and 2.2 per cent, pay growth is running lower than the equivalent 3 per cent annual inflation rate recorded in October. Figures on Tuesday showed inflation up further in November to 3.1 per cent, its highest since March 2012.

Elsewhere, the statistics agency said the unemployment rate remained at 4.3 per cent despite a fall in employment.