Below-inflation salary increases 'a reality'

Date: 18th June 2008

Salary increases below the rate of inflation have become a reality, it has been claimed.

According to the results of data released by Industrial Relations Services (IRS), a firm specialising in benchmarking data, a total of 6.1 per cent of salary increases at least match the rate of inflation measured under the retail prices index (RPI), reports the Press Association.

The RPI rate of inflation is currently set at 4.3 per cent.

"Inflation is being pushed upwards by rising fuel and utility bills. But employees are facing even more of a squeeze on their spending as inflation outruns pay rises," said Sheila Attwood, editor for pay and benefits at the IRS.

The company has found that, across the whole of the economy, salary increases are set at a rate of 3.2 per cent.

Under the consumer price index measure, inflation has risen to 3.3 per cent.