Cost of living flat in real terms since 200220 Feb 2022 13:16
It is now clear that growth in wages in the bottom half of the distribution was weak long before the recession. Median wages have been flat in real terms since around 2002 or 2003, while wages at the 10th percentile have performed better, but have been relatively flat since around 2005. These are worrying trends, contrasting with steady real wage growth from the early 1990s to the early 2000s. Yet until recently, the impact of these trends on household income has been moderated by government support. In fact, even during the 2008-2009 recession, average household incomes did not fall, helped by low inflation offsetting the effect of flat wages, and by some initially favourable aspects of the tax and benefits system – including increases in support through tax credits, especially for families with children.
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https://www.resolutionfoundation.org/app/uploads/2014/08/Priced-Out.pdf