Retail prices index (RPI) inflation rose to 5.0% in July 2008, according to latest official figures released today (subscription required). The IRS headline pay award is some 1.8 percentage points below this level, at 3.2%, according to our latest analysis (subscription required), based on pay settlements concluded over the three months to 30 June 2008.
The pay/inflation gap compares with the 1.4 percentage point gap recorded one month previously.
This is the widest such gap since the closing days of the Thatcher government, back in October 1990 (when it also stood at 1.8 percentage points).
With ongoing concerns that current high inflation could give rise to a wage/price spiral, all eyes will be on the forthcoming IRS analysis of pay trends for the three months to 31 July 2008, scheduled for publication to XpertHR’s pay and benefits pages (subscription required) on Friday 29 August 2008.
- If your organisation has recently settled its annual pay award, and you would like to contribute to our monthly analysis of pay trends, you can submit details of your organisation’s latest settlement for inclusion in the IRS pay databank by completing the online form.