Following sustained inflationary pressure on the cost of living over the past 18 months, the UK has turned a vital corner in our post-pandemic economic recovery, as wages are now growing faster than the rate of inflation for the first time since 2021.
Average weekly earnings hit an annual growth rate of 7.8% during the three months to July 2023, surpassing the highest level since records began. Meanwhile, the rate of inflation fell to 6.8% in the year to July 2023, sharply down from 7.9% in June.
This is significant progress from the UK’s inflationary peak of 11.1% last October, and the Government is well on track to meet the Prime Minister’s pledge at the beginning of the year to halve inflation by the end of 2023.
I agree with the Chancellor, Jeremy Hunt, that “the decisive action we’ve taken to tackle inflation is working”. However, I also agree with the Chancellor that “there is no room for complacency”, and that it is vital that we continue to work in lockstep with the Bank of England to return inflation to the 2% target.
We will continue to work in the interests of the British people to tackle inflation, grow wages, cut bills, and protect living standards across the country.
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