Pay settlements lag well behind inflation, EEF data shows
Pay settlements have crept up to 2.5% but still remain well behind the RPI rate of inflation of 5.2% according to latest data.
Average pay increased 0.1% from March- EEF/JAM recruitment data showed.
However, 80% of settlements remained below 3% with 14% of companies still operating pay freezes.
The figures will help calm fears of significant upward pressure on wage inflation, the EEF claimed.
Lee Hopley, EEF Chief Economist, said:- "We have now been through the two single busiest months for wage negotiations and there remains little evidence of significant upward pressure on pay. Despite the small increase we are only returning to the level of settlements we would expect to see by historical standards."
Hopley added: "Economic uncertainty and the need for companies to control their costs in the face of global pressures continue to be the main driver of agreements."
The data was based on 180 pay settlements.
