‘It will take years for wages to recover’: How long can we expect the cost of living crisis to last?

Real wages are falling at a record pace, with worse yet to come according to financial analysts. Ben Chapman asks whether there is any hope of a let-up

Members of the Rail, Maritime and Transport union (RMT) on the picket line outside Bristol Temple Meads station as union members take part in a strike over pay and conditions (PA)

It may take years for real earnings to recover to their previous peak, experts have warned. Huge increases in the cost of gas, electricity and a host of other basic goods have sent inflation rocketing to 10.1 per cent, with little sign that it is slowing down.

Families on lower incomes have been hit even harder, with consumer price inflation for the poorest tenth of households hitting 10.9 per cent, compared to 9.4 per cent for the richest tenth of households, according to calculations by the Resolution Foundation – a “cost-of-living gap” that the think tank says reflects the fact that less well-off households spend a greater share of their budget on food and energy bills.

Russia’s invasion of Ukraine earlier this year, starting a protracted war, has certainly contributed to the current turmoil afflicting global energy markets.