Employers are expecting wages to increase by 4%

The Chartered Institute of Personnel and Development (CIPD) has said that British employers are expecting wages to rise by 4% over the next year.

The CIPD said that in the public sector the median pay will remain at 3%.

In March the Bank of England had expected the consumer price inflation to ease at 2%, however it slowed to 3.2%.

James Cockett, labour market economist at the CIPD, said, “While employers’ pay rise expectations remain above pre-pandemic levels, we would expect them to adjust their plans for pay rises in the coming months, as inflation falls and the labour market continues to slow.”

“Unless productivity picks up, wage growth will peter out, or pay rises will simply be passed on through higher prices and prolong our inflation problems,” Resolution Foundation Research Director Greg Thwaites said.