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High inflation continues to stifle wage growth
Pub. Date
15 February, 2022
Pub. Type
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Wage Tracker February 2022Authors
Dr Kemar Whyte
Related Themes
Macro-Economic Modelling and ForecastingMain points
- Growth in Average Weekly Earnings including bonuses (AWE) was 4.3 per cent in the 3 months to December 2021, stronger than the 3.8 per cent that we predicted in January.
- We now forecast private-sector AWE to decrease from 4.6 per cent in the 3 months to December 2021 to 4.3 per cent in the first quarter of 2022.
- With the current policy of moderation in public-sector pay, we forecast public-sector AWE growth to be stable between 2½ and 3 per cent until the first quarter of 2022.
"Wages in the UK picked up in January, largely driven by record high vacancies, but still lag behind inflation. With consumer price inflation rising to a near 30-year high of 5.4 per cent in December and expected to reach 7 per cent over the coming months, workers can expect a real squeeze on their income."
Dr Kemar Whyte
Senior Economist, NIESR
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