Wage growth outstripping inflation at strongest rate in years in boost to UK economy | Personal Finance | Finance [Video]

Rishi Sunak insists UK economy ‘on the right track’

Wages are rising faster than the cost of living at the strongest level for nearly two and half years.

The new figures, which come from the Office for National Statistics (ONS), suggest the cost of living squeeze is easing.

The ONS said average annual growth in employees’ average regular earnings (excluding bonuses) in Great Britain was 6 percent in December 2023 to February 2024.

And annual growth in total earnings (including bonuses) was 5.6 percent.

This is ahead with the CPI measure of inflation for goods and services which was 3.4 percent in February.

Annual growth in total earnings (including bonuses) was 5.6 percent. (Image: Getty)

The latest Labour market overview from the ONS also revealed that the UK labour market is cooling with a rise in unemployment and economic inactivity together with a fall in the number of vacancies.

The ONS said unemployment rate was estimated at 4.2 percent, which is up slightly.

At the …