The spectre of inflation has arisen in recent times, but higher wage growth is now improving workers' living standards.
August 2018's consumer prices index including housing costs (CPIH) measure of inflation has been announced as 2.4%. Coupled with July 2018's wage growth figures of 2.6%, this means that salaries are only just growing faster than prices are rising. So in real terms, wages are worth more each month.
How your wage is affected
The Office for National Statistics (ONS) has provided us with a handy tool (below) to show how much the value of your wages improves if they increase by an average percentage compared to inflation.
For example, the median wage was £27,300 in the financial year ending 2017, according to the ONS. Based on calculations from the tool, if that pay packet rose at the average growth rate of 2.6%, it would be worth £55 more against current inflation.
See the tool below and enter your annual salary to calculate how much your earnings could change in value.
The tool is based on August 2018 CPIH figures released on 19 September 2018 and July 2018 growth in earnings figures released on 14 August 2018. See What is CPIH? for an explanation of how CPIH differs from CPI - the consumer pirces index measure of inflation.