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Pay rises beat inflation

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Government figures reveal that average earnings, excluding bonuses, rose by 3.8 per cent in the year to October 2006 – while the consumer prices measure of inflation increased by 2.4 per cent.

The rise was fuelled by strong growth in the private sector during the month, which the Office for National Statistics attributes to overtime.

Pay growth in the private sector was 3.9 per cent, compared to 3.1 per cent in the public sector.

Average earnings including bonuses rose by 4.1 per cent in the year to October, with private sector growth standing at 4.2 per cent, compared to 3.3 per cent for the public sector.

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