Pay rises at fastest pace for over 20 years, but below inflation

By Michael Race

Business reporter, BBC News

Wages have grown at the fastest rate in more than 20 years, but are still failing to keep up with rising prices.

Average pay, including and excluding bonuses, rose by 6.4% between September and November compared with the same period in 2021, official figures show.

It is the fastest growth since 2001, excluding during the height of Covid, but when adjusted for rising prices, wages fell in real terms by 2.6%.

The gap between public and private sector pay is also near a record high.

Private sector wages grew 7.2% annually in the three months to November, which was more than double that of the 3.3% increase in the public sector, according to the Office for National Statistics (ONS).

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