Living expenses are rising due to inflation, which is surpassing income growth.
After taking inflation into account, real earnings in Britain fell by 3% annually from April to June, according to statistics from the UK Office for National Statistics (ONS) released on Tuesday.
“The true value of compensation keeps decreasing. Without bonuses, it continues to decline more quickly than at any other point since similar records began in 2001, according to Darren Morgan, director of economic statistics at the ONS, as quoted by CNBC.
The average wage, exclusive of bonuses, increased by 4.7%, according to the ONS. However, because of rising energy and food prices throughout this time, the cost of living has almost entirely offset the impact of these increases in purchasing power.
Inflation in the UK soared to a 40-year high of 9.4% in June; according to experts, it will surpass 13% by October. The Trades Union Congress (TUC) stated in a report released last week that the worst decline in real wages in the UK in a century could occur by the time wage rises in the nation lag inflation by almost 8%.
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