In a welcome boost for Britons, recent data shows that wage growth is finally outpacing inflation, leading to an improvement in living standards. This positive development comes even as official figures confirm a mild recession at the end of 2023.
While the recession news may seem concerning, the rising wages offer a silver lining and suggest that the economic outlook is improving. This trend is likely to bring some much-needed relief to households across the UK who have been feeling the pinch of rising prices.
There’s good news for UK households: real disposable income per person rose by 0.4% in the final quarter of 2023, according to the Office for National Statistics. This increase more than makes up for the 0.3% dip experienced in the previous quarter and marks the highest level of per capita income since the third quarter of 2021. This positive development comes after a period of strain on household finances due to the energy crisis and soaring inflation. Overall, disposable incomes saw a 0.7% increase, indicating a welcome improvement in the financial well-being of many families.
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