Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
What it means
Wage growth is usually given as a percentage, often comparing pay with the same period a year earlier. The headline may describe the money amount of pay before adjusting for inflation, or what pay can buy after that adjustment. It may also include or leave out bonuses. A national average can change partly because the mix of workers and jobs changes, not only because each person's pay changes.
Example
If weekly pay rises from £500 to £525, that is 5% wage growth measured in pounds. To tell whether workers can buy more, compare it with price rises over the same period.
Why it matters
A wage-growth headline is easier to interpret when you know whether it includes inflation, bonuses and changes in the people being counted.
Also known as
pay growth
Related terms
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Collective bargaining
Workers' representatives and an employer negotiating pay or working conditions for a group.
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Inflation
A general rise in prices over time.
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Mean earnings
Total earnings for a group divided by the number of people or jobs counted.
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Nominal wages
Pay measured in pounds, without adjusting for changes in prices.
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Real wages
Pay measured by what it can buy after allowing for changes in prices.
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Underemployment
When someone has work but would like and is available for more paid hours.
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Keep in the loop
News
Highlights from about the UK economy, the UK government and the UK public sector.
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Guides and insights
Analysis
Clear, accessible analysis of the economic issues shaping everyday life
Living standards
What does a day’s work buy?
Comparing the cost of everyday life across generations, from bread and beer to buying a home.
Food & prices
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How farming, energy, transport and supermarket competition shape the price on the shelf.
Prices & inflation
Inflation is falling. What happens next?
What slower price rises mean for wages, purchasing power and economic recovery.
Shared prosperity
What would shared prosperity look like?
Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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