Real wages in Britain, after adjusting for inflation, fell 3% a year between April and June, according to data from the UK Office for National Statistics (ONS) released on Tuesday.
“The real value of compensation continues to decline. Excluding bonuses, it is falling even faster than at any other time since comparable records began in 2001,” Darren Morgan, director of economic statistics at the ONS, said, quoted by CNBC.
According to the ONS, the average salary, excluding bonuses, rose by 4.7%. However, the cost of living has all but erased the effect of these gains on purchasing power, having soared during this period due to rising energy and food costs.
UK inflation hit a 40-year high of 9.4% in June, and experts predict it will top 13% by October. In a report released last week, the Trades Union Congress (TUC) said wage increases in the country could then lag inflation by nearly 8%, which would be the biggest drop in real wages in the world. UK in 100 years.
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