Latest inflation news
Everyone welcomed the surprise news that inflation in the UK not only fell but dipped further than expected in June to 7.9%. However, even with the rate at a new 15-month low, inflation is still high. Taking into account core inflation (which excludes food, energy, food, alcohol and tobacco) at 6.9% and services inflation at 7.2%, these figures still rank perilously close to a 30-year peak.
As the UK’s leading independent job board, CV-Library’s latest data reveals the stark reality of the current rate for UK professionals. The figures reveal that only three regions in the UK are seeing wages increasing at, or above, the current rate of inflation.
The full breakdown of wage increases, based upon year-to-date salary figures compared to 2022, is as follows:
Year-on-year salary increases by region*
8.7% East Midlands
8.3% The North
8.0% Wales
7.7% Scotland
7.3% North East
7.1% South West
6.9% North West
6.6% East Anglia
6.3% West Midlands
5.7% South East
5.2% Northern Island
2.0% London
Perception versus reality
There’s a perception that wages and inflation are growing exponentially, and both the government and the Govenor of the Bank of England have publicly cited salary increases as a key driver of inflation. However, this latest data shows that for the majority of UK professionals, wages are not increasing at the same pace as inflation.
Should employers increase wages in line with inflation?
It’s fair to assume that most UK workers would like a pay rise in order meet the additional costs they’re facing but should the shortfall be met by employers? Businesses are struggling to balance their own increased costs with the additional salary needs and expectations of their staff. No matter how much employers would like to offer pay that matches inflation, I would argue that it’s neither financially sustainable at the current levels nor beneficial to the long-term recovery of the UK economy.
