Food inflation is rising nearly three times faster than wages
- Gap between food inflation growth and wage growth is the highest since current records began in 2000, says union body
- Food inflation has tripled over the last year
Food inflation is rising nearly three (2.7) times faster than wages – according to new TUC analysis published today (Wednesday).
The analysis shows that food prices rose by 18.3% in February, compared to 6.9% for nominal wage growth (the most comparable recent data).
The union body says the gap between food inflation and wage growth is the highest since current records began in 2000.
The TUC highlights how food inflation has tripled over the past year from in 5.8% in March 2022 to 19.6 in March 2023.
Lowest-paid workers hit hardest
The TUC says low-paid workers are being squeezed hardest with this month’s increase in food and energy bills hammering household finances.
Low-income households spend 18% of total expenditure on food and drinks, compared to 12% in high-income households
This rises to 45% for low-income households when energy and housing is included, compared to 25% for high-income households.
Min wage increase “wiped out”
The TUC also highlighted that the minimum wage will go up (+9.7%) at just half the rate of current food prices (+19.6%).
Had the minimum wage risen in line with grocery bills, low-paid workers would have pocketed an extra £1600 over the next year.
TUC General Secretary Paul Nowak said:
“Make no mistake. Britain’s cost of living nightmare is far from over.
“Food and energy bills are hammering household budgets – especially for those on lower incomes.
“Unless we bring prices under control – and get pay rising in every corner of the country – families will keep lurching from crisis to crisis.
“That means fair pay for all public servants and getting the minimum wage to £15 per an hour as soon as possible.
“And it means introducing industry-wide Fair Pay Agreements so that all workers have a minimum set of pay and rights.”
On the need for ministers to change course, Paul added:
“The government is presiding over the worst cost of living crisis in Europe.
“It should be working with unions to boost living standards across Britain.
“But instead ministers want to make it harder for workers to win better pay and conditions.”
