1. The media is awash with reports that wages are finally rising faster than inflation.
The rate of wage growth really matters because for six years wage growth has been much lower than inflation, the annual increase in the price of goods.
This means that people have found themselves coping with falling living standards as goods and services become more expensive in real terms – they can’t afford the same things they used to buy.
Labour has made this a key part of its political strategy by talking about a “cost of living crisis”.
So the moment when earnings growth passes inflation is a major political moment, because it allows the coalition parties to argue, rightly or wrongly, that Labour’s criticism isn’t right.