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...
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