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| Wages officially outpace inflation, says ONS | Wages officially outpace inflation, says ONS |
| (35 minutes later) | |
| Average weekly earnings are now officially rising faster than inflation, for the first time in nearly six years. | Average weekly earnings are now officially rising faster than inflation, for the first time in nearly six years. |
| Wages including bonuses rose by 1.7% in the year to March, according to the Office for National Statistics (ONS). | Wages including bonuses rose by 1.7% in the year to March, according to the Office for National Statistics (ONS). |
| Inflation over the same period was 1.6%, as measured by the Consumer Prices Index (CPI). | Inflation over the same period was 1.6%, as measured by the Consumer Prices Index (CPI). |
| The earnings figure is the same as last month, but has now overtaken inflation in the first direct comparison. | The earnings figure is the same as last month, but has now overtaken inflation in the first direct comparison. |
| However, when bonuses are excluded, wages are still running below the CPI inflation rate. | However, when bonuses are excluded, wages are still running below the CPI inflation rate. |
| Regular pay, as the ONS calls it, rose by 1.3% in the year to March. | Regular pay, as the ONS calls it, rose by 1.3% in the year to March. |
| For most of the last six years, inflation has outpaced wage rises, leading to a cut in living standards for millions of UK citizens. | For most of the last six years, inflation has outpaced wage rises, leading to a cut in living standards for millions of UK citizens. |
| However, it is likely to be many years before any growth in real wages makes up for lost time. | |
| The Office for Budget Responsibility (OBR) has forecast that real incomes will not return to 2008 levels until 2018 at the earliest. | The Office for Budget Responsibility (OBR) has forecast that real incomes will not return to 2008 levels until 2018 at the earliest. |
| 'Disappointing' | |
| If anything, the City had been expecting better figures. | |
| "This is actually a markedly weaker set of earnings data than expected," said Howard Archer, the chief UK and European economist at IHS Global Insight. | |
| "March's earnings data are disappointing for consumer purchasing power," he said. | |
| However, some analysts were optimistic that wages would continue to rise. | |
| "I think average earnings could surprise in strength as we go through the year," said Louise Cooper, an independent market analyst. | |
| "Companies have not invested for years and for the large companies, profit margins are relatively high. Many can afford to pay their staff more," she said. |