WTO cuts global trade forecast; real regular UK pay shrinks – business live | Business

The Office for National Statistics (ONS) said regular pay excluding bonuses tumbled 1.8% in the three months to February when taking soaring inflation into account, as measured by the Consumer Prices Index (CPI) – the steepest fall since August to October 2013.

The ONS said real pay was now “falling noticeably”, with figures for February alone showing regular wages dropped 2.1% after inflation, which was the biggest drop since August 2013, the ONS added.

When compared with CPIH, which includes owner occupiers’ housing costs and is the ONS’s preferred measure of inflation, real regular wages fell 1% in the three months to February.

While pay rose 4% in the quarter, it was far outstripped by inflation and experts have warned wages will lag even further behind rising prices this year as inflation is expected to rocket in the autumn.