Rising prices rob workers

Wages left behind by inflation surge

SOARING living costs pose a “serious challenge” to millions of households, experts have warned.

Inflation spiked last month – hitting a near four-year high – but firms continued to slash pay rises.

The toxic combination is hammering family budgets because it means a pay cut for workers in real terms.

Figures from the Office for National Statistics showed the Consumer Price Index measure of inflation jumped from 2.3% in March to 2.7% in April.

It outstripped average wage rises of 2.3% in the year to February. Latest ONS pay data is out today.

Inflation has been pushed up by the Brexit-hit pound, electricity price hikes and rising air fares.

Kay Daniel Neufeld, economist at the Centre for Economics and Business Research, said: “Rising prices pose a serious challenge to UK households.”

And Lib Dem Shadow Business Secretary Susan Kramer said: “These worrying levels of inflation show the Brexit squeeze is hitting shopping baskets across the country.”

The GMB union warned that public sector workers were among those hit hardest by the pay squeeze.

General secretary Tim Roache said: “The public sector pay cap has to end. It’s completely untenable. The Prime Minister keeps paying lip service to helping working people, well there’s an easy way to do it.”

Air fares jumped 18.6% month-on-month in April due to the timing of the Easter holidays.

The price of clothes also climbed to its highest level for six years.