When it’s actually just 6.3%!
We are beginning to be advised, by economists, that wage inflation will soon outstrip normal inflation so we will be better off.
BEWARE! ALL IS NOT WHAT IT SEEMS!
For instance, this week a well known economist predicted the following will happen very shortly:
INFLATION AT 6.5%
WAGE INFLATION AT 7.4%
Implying that we are soon going to get paid more than the rate of inflation.
WRONG!
What you get when given a rise is very different to what ends up in your pay packet!
And now here is the boring bit!
The average wage of £33,852 when increased by 7.4% produces a take home salary of £28,747 (£27,044 previously) .. which means the recipient is better off by only 6.3%!
So wage inflation still remains behind the headline figure of Inflation