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Inflation figures could hint at prolonged crisis

The i 14/08/2022 Bradley Gerrard
New inflation data out on Wednesday could reveal whether the cost-of-living crisis is set to stay or whether some respite is in sight. (Photo: Getty) © Provided by The i New inflation data out on Wednesday could reveal whether the cost-of-living crisis is set to stay or whether some respite is in sight. (Photo: Getty)

Fresh data on rising prices which is due out this week will reveal the extent to which the cost of living crisis is continuing.

The Office for National Statistics will report July’s inflation figures on Wednesday, a release that will be hotly anticipated given the 9.4 per cent annual increase in the Consumer Prices Index in June, which was the highest for 40 years.

The spike in prices prompted the Bank of England to raise rates by 0.5 percentage points earlier this month, the highest single rise in 27 years.

The inflation data will come out a day after unemployment, vacancies and wage growth data for June.

The unemployment rate in the three months to May was 3.8 per cent, down from 3.9 per cent in the prior period, while the employment rate was 75.9 per cent, just below pre-pandemic peaks.

Meanwhile, vacancies stood at 1.3 million, well above the level prior to the pandemic.

However, the Chartered Institute of Personnel and Development (CIPD) said the UK’s hiring boom was set to continue, with pay awards hitting a record median high of 4 per cent in the private sector.

Jonathan Boys, of the CIPD, said: “We’re seeing some of the highest pay awards in recent history as employers strive to attract and retain staff.

“However, strong pay growth can’t last forever, and to deal with the cost of living crisis, employers will have to look at other ways they can support their people.”

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