- Retail prices index (RPI) inflation - the most commonly-used measure among private sector pay setters - fell from 4.2% in October 2008 to 3.0% in November.
- Consumer prices index (CPI) inflation - the government's preferred measure stood at 4.1% in November 2008, down from 4.5% the previous month.
In line with the almost surreally accelerated pace of economic change that has characterised 2008 as a whole, the latest inflation figures are scarcely recognisable from the peak rates recorded only two months ago.
The latest data mean that pay awards are now ahead of RPI inflation. The IRS headline pay award (subscription required) is now 0.8 percentage points above RPI, at 3.8%, according to our latest analysis, based on pay settlements concluded over the three months to 31 October 2008.
Our next monthly analysis of whole economy pay trends - looking at the three months to 30 November 2008 - is scheduled for publication to XpertHR's pay and benefits homepage (subscription required) this coming Friday (19 December 2008). This will look in detail at the relationship between pay and inflation as we approach the new year.
- Has your organisation recently carried out an annual pay review? If so, and if it has now been settled, please get in touch so that we can add your organisation's pay award to the IRS database.
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