Mini-boom in Living Standards is Over

A "mini-boom" in living standards has ended according to a report by the Resolution Foundation.

The think tank says living standards improved significantly between 2014 and the beginning of 2016, as subdued inflation coincided with rising wages and employment.
But a rise in inflation late in 2016, coupled with slower income growth, has ended that boom, it argues.

The conclusions are part of its annual report, published later this week.
The Resolution Foundation estimates that incomes in working-age households have grown just 0.5% in the current financial year, the slowest pace since 2012-13. 

"After a tight squeeze during the [financial] crisis, working-age households have enjoyed a living standards mini-boom in recent years," said Stephen Clarke, economic analyst at the Resolution Foundation. 

"But fast-rising inflation this year has brought this all too short mini-boom to a sharp halt as pay rises have not kept up," he said.
The most recent official measure of UK inflation, released earlier this month, showed a sharp rise in inflation to 1.6%. 

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