{"id":44262,"date":"2023-12-12T09:59:16","date_gmt":"2023-12-12T09:59:16","guid":{"rendered":"https:\/\/histarmar.net\/?p=44262"},"modified":"2023-12-12T09:59:16","modified_gmt":"2023-12-12T09:59:16","slug":"inflation-warning-as-workers-urged-to-save-wage-increase-before-rises-crush-cash","status":"publish","type":"post","link":"https:\/\/histarmar.net\/world-news\/inflation-warning-as-workers-urged-to-save-wage-increase-before-rises-crush-cash\/","title":{"rendered":"Inflation warning as workers urged to save wage increase before rises crush cash"},"content":{"rendered":"

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Wage increases may have eased the financial burden for many Britons but pay rises are not keeping up with rising living costs, an expert has warned.<\/p>\n

Regular pay excluding bonuses in Great Britain increased 7.3 percent from August to October 2023 compared to the same period a year before.<\/p>\n

Average regular earnings increased 7.2 percent for the quarter with earnings growth for the public sector at 6.9 percent. All these pay growth figures beat inflation for the period, which was at 4.7 percent for the year to October.<\/p>\n

But Sarah Coles, head of personal finance at Hargreaves Lansdown, warned pay growth is not keeping up with the rising cost of living.<\/p>\n

She said: “Wage rises still have an awfully long way to go to make up for the spending power we\u2019ve lost over the past couple of years.<\/p>\n

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“They\u2019ve beaten inflation slightly for five months, but they had been growing slower than price rises for a full 18 months. This time last year, total pay was down four percent in a year, and the OBR expects living standards in the coming financial year to be 3.5 percent lower than their pre-pandemic level.”<\/p>\n

She also warned the wage increases vary for different sectors. She explained: “These wage rises aren\u2019t smoothly distributed either, with wages in the financial and business sectors up 8.3 percent and manufacturing at 7.4 percent, compared with construction at 5.2 percent.<\/p>\n

“It\u2019s also worth bearing in mind that inflation isn\u2019t being felt equally. Food inflation was still running at 10.1 percent in October. The lower your income, the bigger the proportion of it you spend on essentials like food, so the harder this hits. It means lower earners are still struggling disproportionately.”<\/p>\n

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Ms Coles urged working Britons to use their extra pay to build up their savings. She said: “If you\u2019re in the fortunate position of having more wiggle room than you had previously, it\u2019s worth taking advantage \u2013 and rebuilding your emergency savings while you can.<\/p>\n

“Anyone of working age should be working towards three to six months\u2019 worth of essential spending in a competitive easy access account.<\/p>\n

“However, if you\u2019re falling a long way short of the goal, don\u2019t panic. You don\u2019t need to do this overnight. Just put aside as much as you can afford, as soon as you can afford to do so, in a competitive easy access savings account, and build whatever you can.”<\/p>\n