UK workers saw their pay lag behind inflation at record levels over the past quarter, according to official figures. The Office for National Statistics (ONS) said regular pay, excluding bonuses, grew by 4.7% over the three months to June.
Analysts had predicted that wages would increase by 4.5%. It comes after CPI inflation hit a new 40-year record of 9.4% in June and is expected to peak at around 11% later this year.
The ONS said this resulted in a 3% drop in regular pay for employees once inflation is taken into account, representing the biggest slump since records began in 2001. Official figures also showed that the number of UK workers on payrolls rose by 73,000 between June and July to 29.7 million.
