Inflation rate set to overtake '˜subdued' pay rises
With pay increases remaining 'subdued' in recent months, a new report has predicted they will be overtaken by inflation this year.
Median wage rises in the three months to July were 2 per cent, slightly ahead of the retail prices index (RPI) measure of inflation, which came in at 1.9 per cent for the month.
However, analysts at XpertHR said there was no sign that pay rises will accelerate throughout the rest of the year, while RPI was predicted to rise above 2 per cent in the final quarter. Its study of more than 50 pay settlements found that half were lower than last year, while a fifth were higher and the rest remained the same.
XpertHR pay and benefits editor Sheila Attwood said: “The busiest part of the year for pay awards is now behind us.
“Based on data for the year so far, we see no signs that pay award levels will increase in the remainder of the year. We expect 2 per cent to remain the benchmark pay award through to the end of 2016.”