Average pay is about to start rising faster than inflation for the first time in more than a year, economists have said, amid signs that the cost of living crisis is beginning to ease.
New inflation figures, due to be released next week, are expected to show a fall in the consumer price index (CPI) from 7.9 per cent in June to about 6.8 per cent last month, according to Bank of England forecasts.
At the same time average earnings data, due to be released the following day, is likely to show a rise in wages of slightly more than 7 per cent.
The figures would represent the first time in 14 months that earnings have grown faster than inflation since the shock of higher
Enjoy unlimited digital access. £1 for 6 months.