UK nominal wages pick up in 3 months to June, but inflation adjusted, they fall at fastest pace on record.
UK real earnings fell sharply in the three months to June, with inflation adjusted pay excluding bonuses falling at the fastest rate since comparable records began, the Office for National Statistics said Tuesday. Ex-bonuses, wages declined 3.0% year-on-year, while wages including bonuses declined by 2.5%. Unadjusted total wages rose 5.1% y/y, slightly exceeding analysts expectations.
The ONS data is inflation adjusted again the CPIH inflation measure. Against CPI, real wages ex-bonuses fell 4.1% y/y, also a record decline.
"Excluding bonuses, it is still dropping faster than at any time since comparable records began in 2001,” ONS director of economic statistics Darren Morgan said.
The data underlines the difficulties both the Bank of England and the government face, with the cost-of-living crisis being amplified by slowing real incomes. With inflation not set to peak until later in Q4 - even Q1 2023 in some estimates - the squeeze on household budgets is unlikely to improve anytime soon.