Wages: Why are they not keeping up with inflation?

Jun 9, 2022

Rising inflation is reducing the real wage value of workers. Image: Unsplash/ Dai KE

David Spencer

Professor of Economics and Political Economy, University of Leeds

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A chart showing growth in pay, inflation and unemployment (%)

Regular pay is net of things like overtime, bonuses and benefits insurance; CPI = consumer price inflation. Image: The Conversation/ONS

A chart showing total average real wage (£)

Y-axis is real average weekly wages (£) Image: The Conversation/IbisWorld

Government is aiming to raise £5 billion with a windfall tax on oil and gas companies. Image: The Conversation/Mr.PK

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