Clarkslegal LLP - Solicitors in Reading and London

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Ups and downs

15 November 2011 #Employment


The rate of Consumer Prices Index inflation in the UK fell slightly during October to 5%.  This is down from a rate of 5.2% in September.  Falls in the price of food, air transport and fuel helped to push the inflation rate lower.

Retail Prices Index (RPI) inflation - which includes mortgage interest payments - also fell to 5.4% from 5.6% in September, when the RPI was at 20 year high.

Despite the drop, the rate still remains well above the Bank of England`s target of 2% and the government has acknowledged that inflation remains high.

This news comes at the same time as The Telegraph reports that the gap between take-home pay and inflation has widened since June 2011.

Take-home pay is down by an average of £40 per month compared to a year ago, and £68 per month compared to two years ago, revealing a long-term fall in workers` spending power.  The sluggish economy, high inflation along with weak take-home pay growth means consumers purchasing power will be substantially eroded for some time to come.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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