UK living standards fall at record rate as inflation soars

Earnings growth increased across the private and public sector by 4.3% in the three months to May, but that left pay down by 2.8%. Photograph: Purple Marbles/Alamy

British workers’ living standards dropped in May at a record rate after pay rises failed to keep pace with inflation.

Earnings growth increased across the private and public sector by 4.3% in the three months to May excluding bonuses, the Office for National Statistics said, but that left pay down by 2.8% year on year – a record fall.