Wage growth will overtake inflation in WEEKS – meaning more money finally gets to your pocket
HARD-UP Brits will finally start to see a boost to their incomes again in weeks - as wages start to grow faster than inflation.
For months average earnings have been lagging behind as inflation crept up, as goods in the shops were more expensive.
It meant that Brits were worse off than they were before because prices were rising faster than wages could keep up.
But in just a fortnight workers will see that reversed and inflation will start to tumble again, it was revealed today.
In economic predictions from the Office for Budget Responsibility, it said that inflation will drop to 2.5 per cent in quarter of two of this year - which starts in April.
And average earnings growth will be 2.8 per cent - meaning Brits' pay will go further.
Inflation - which shows how much goods in the shops have gone up by - will continue to slow down in the coming months, reading a low of 1.8 this time next year.
If he's proved right, this means the Chancellor will hit his target again of 2% inflation again by the beginning of next year.
Mr Hammond said today that the forecasts would show "rising real wages".
He told MPs: "real wage growth is expected to be positive from the first quarter of 18-19, and to increase steadily thereafter."
Also in the Spring Statement, Philip Hammond announced:
- The UK economy is growing faster than expected, with growth of 1.5 per cent forecast for 2018
- National debt is about to start falling as a share of the economy as the Government no longer borrows cash for day-to-day spending
- The economic gains will allow him to increase spending later this year
- Average wages will finally begin to rise above inflation by the autumn
- Ministers will consult on a new litter tax and provide relief for small firms
- Tech giants could face tax changes which will see them finally paying their fare share
