The latest figures from Incomes Data Research puts inflation rising sharply to 3.9% on the all- items RPI measure.
The rise is reported as 2.9% on CPI and 2.7% on CPIH, putting pressure on wages to rise. According to the latest monitoring figures from IDR, the median pay settlement across the economy rose to 2.4% in the three months to July. This is the highest that they have recorded so far in 2017, up from 2% in the previous three rolling periods.
The latest figures are based on 75 pay settlements, mostly at organisations in the private sector. Pay is not keeping up with inflation and Incomes Data Research report that in real terms, wages dropped by 0.4% in the three months to July. All of the data means that employers could find pay sitting higher on the agenda with their employees in the coming months.
For more information and help on pay, salary benchmarking and employee reward contact Halcyon HR Consulting Ltd.