Real income to grow next year, says thinktank

clock

Households should see a rise in real incomes from next year on the back of slowing inflation and rising pay growth, a report by the Centre for Economic and Business Research (CEBR) suggests.

The rise in 2013 will be the first since the onset of the financial crisis, though the CEBR predicted inflation would once again outstrip earnings as early as 2016. Consumer Prices Index (CPI) inflation rose sharply between September 2009 and September 2011 to stand at 5.2%. Despite a small rise between June and July this year, it has fallen steadily since then and now stands at 2.6%. The CEBR said real levels of income would start to pick up as inflation fell further. The Bank of England expects CPI inflation to fall below its 2% target by the middle of next year. The CEBR said...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

IHT rule changes spark adviser-led surge in estate planning and charitable giving

IHT rule changes spark adviser-led surge in estate planning and charitable giving

Upcoming changes already beginning to influence charitable will-writing and estates market

Isabel Baxter
clock 16 June 2025 • 3 min read
Advisers see higher client demand as tax changes and rumours cause confusion

Advisers see higher client demand as tax changes and rumours cause confusion

See opportunity to provide ‘much-needed’ clarity

Isabel Baxter
clock 23 April 2025 • 2 min read
HMRC to raise £110m per year by cutting IHT relief on AIM shares

HMRC to raise £110m per year by cutting IHT relief on AIM shares

Will make gifting a more attractive option to investors

Isabel Baxter
clock 22 April 2025 • 2 min read