Wages spike by 4.2% but are STILL rising slower than prices

Fears are mounting of an inflation spiral today after new figures showed wages spiking and unemployment dropping to a five-decade low.

Pay including bonuses jumped 7 per cent and was up 9.9 per cent in March as firms ramped up rewards to keep staff amid a booming jobs market.  

However, regular pay was only up by 4.2 per cent – meaning a 1.2 per cent fall when inflation was taken into account. 

There is also a big divide in different sectors, with finance and business services workers seeing a 10.7 per cent increase in their packets and employees in retailing, hotels and restaurants 8.5…