UK earnings growth outstrips inflation

British pay growth outstripped a dwindling inflation rate by the widest margin since before the financial crisis in December, several measures of earnings showed, giving many households a boost ahead of elections in May.

The Office for National Statistics also said yesterday the unemployment rate unexpectedly fell to 5.7%, its lowest level in more than six years.

The pick-up in pay growth was bolstered by bonus payments. But it may help British prime minister David Cameron to convince voters the recovery in the economy is filtering down to them. Mr Cameron hailed the numbers as a key moment in Britain’s recovery from the financial crisis.