NIESR says inflation will rise to 3.4%, well above OBR forecast, prompting real-terms cut in takehome pay
British workers will see their disposable incomes shrinking this year as a result of rising inflation that will peak at 3.4%, a leading economic thinktank has warned.
The National Institute of Economic & Social Research said that wage rises would be capped at only 2.7% on average, leaving workers to face the largest real-terms cut in their takehome pay since early 2014.