The Centre for Economics and Business Research (CEBR) has predicted that income levels are set to rise by 0.5% in 2013.
This news comes at a time of need for most people throughout the UK; in recent years inflation has risen has risen out of control, yet wages remained the same. Inflation hit its peak in September 2011, rising to, a huge 5.2% in less than two years. Since this period it has dropped slowly to a steady 2.6%.
It is suggested that middle-income households will see increases of 1% next year and lower-income households seeing a rise of 1.5% in their annual salary. High earners will also benefit with a rise of 0.7%. These figures are set to continue through 2013 and 2014.
The CEBR also expects to see the retail market benefit from this increased income level, with sales predicted to rise by 2.5% in the next 12 months. CEBR economist Daniel Solomon said “after four barren years, there is finally a glimmer of light at the end of the tunnel for retailers”.
However the CEBR have also stated that incomes will actually drop by 0.2% this year..