The spectre of inflation has arisen in 2017, and coupled with poor wage growth is set to impact negatively on workers' living standards.
June's inflation figures of 2.6% and May's wage growth figures of 1.8% mean that your salary is growing slower than prices are rising. This means in real-terms your wage is worth less each month.
How your wage is affected
The ONS has provided us with a handy tool (below) to calculate what increase you would need in your pay packet next year, to avoid devaluing your take-home pay.
For example, the average median wage was £28,200 between 2015 and 2016, according to the ONS. Based on calculations from the tool, if that pay packet rose at the average growth rate of 1.8%, it would devalue £226 against current inflation.
See the tool below and enter your annual salary to calculate how much your earnings could devalue. The tool is based on June 2017 CPIH figures released on 18 July 2017 and May 2017 growth in earnings figures released on 12 July 2017. See What is CPIH? for an explanation of how it differs from CPI.
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Source Moneywise http://ift.tt/2tBu6Ni
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