Many financial figures and forecasts are due out later this week, and most are expected to reveal that the UK’s family budgets are still being squeezed tight, with more bad news to be announced on jobs, salaries, economic growth and inflation.
Living standards will be hit harder and earnings lag even further behind as household essentials continue to creep up in price. In addition, more people will be at risk of becoming unemployed.
Last week the Bank of England Governor Sir Mervyn King warned that we would suffer a ‘long and deep squeeze in real living standards’ that could last well into 2012.
Real earnings dropped in 2010, something not seen since 1982, and are expected to have dropped again in 2011.
Inflation, whilst falling slightly, is presently more than twice the Bank of England’s target of 2%, in the job market wages are staying low as employees have less bargaining power with their bosses.
The Consumer Prices Index dropped slightly to 4.2% in June from 4.5% in May, but the latest figures for inflation, which are due to be released tomorrow, are likely to show another increase.
Unemployment figures rose by 24,500 in May according to claimant counts and stood at 1.52 million. Wednesday will see the release of figures for average earnings and average weekly earnings, both are expected to see falls.
The annual growth rate figures, both with and without bonuses, at 2.3% and 2.1% respectively are well below the Consumer Price Index inflation and the Retail Price Index inflation of 5%.
The stock markets have taken a bashing recently with both the US and the Eurozone in turmoil and fresh problems are expected to arise this week.
Financial analysts will present figures on Tuesday that are expecting to show just 0.3% growth in the Eurozone, a drop of 0.8% for the first three months of the year.
Related Posts :
