Good morning.
There’s yet another reminder of the cost-of-living crisis this morning, with the latest ONS figures showing wage growth is lagging well behind surging inflation.
While average earnings excluding bonuses rose 4.1pc in February from a year ago, when adjusted for prices they dropped 1.3pc – the biggest fall since 2013.
There were also signs the labour market recovery could be running out of steam. While unemployment dropped to 3.8pc in the quarter to February and vacancies remained at a record high, payrolls increased by just 35,000 in March – well below expectations.
The figures highlight the cost-of-living crunch that’s expected to hit demand and growth for the rest of the year. On top of rising prices and lagging wages, households are also grappling with recent energy bill and tax rises.
5 things to start your day
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