Britons Set to Relive Pay Squeeze as Inflation Erodes Wages
- Price gains match pay rises for first time since 2014
- BOE torn between supporting economy and controlling inflation
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The U.K.’s consumer engine is under threat as surging inflation has eroded wage increases, meaning workers are set for their first drop in real incomes in more than two years.
A bigger-than-forecast jump in inflation last month put price growth at 2.3 percent. That’s above the Bank of England’s target for the first time in three years and, crucially, the same level as the most recent pay data.