Average real wages — which account for inflation — fell by 3% between April and June compared with the same period last year, according to data from the Office for National Statistics published Tuesday.
Regular pay (excluding bonuses) was up 4.7% between April and June, the ONS said, but with prices rising at a much faster rate, employees are left worse off.
On Tuesday, data firm Kantar said that UK grocery price inflation hit 11.6% over the past four weeks, the highest level it had seen in 14 years of tracking the data. Average annual shopping bills are up by £533 ($640).
On Tuesday, thousands of check-in staff at British Airways secured an average 13% pay rise after they threatened to go on strike.
Unite, the workers’ union, said the increase would help reverse pay cuts staff took during the pandemic.