Wages are now rising faster than inflation for the first time since 2010.
The CPI measure of inflation, which was revealed yesterday, stands at 1.6% in March. Average earnings grew 1.7% on last year in the three months to February.
Unemployment also fell by 77,000 to 2.24 million – 6.9% of the labour force.
Joe Grice, chief economic adviser at the Office for National Statistics, said: “These figures – rising employment and falling unemployment and inactivity – continue the strong trend in the labour market that has been seen in recent months. Self-employment has again been a prominent growth area.”
Chancellor George Osborne viewed the news as evidence his economic plan was succeeding.
Inflation falls again to 1.6%. Good news for families and further evidence that our long term economic plan is working
— George Osborne (@George_Osborne) April 15, 2014
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