Real-terms pay still falling despite inflation drop

Despite a recent fall to the lowest level since 2009, inflation (1.5%) still remains comfortably above the average rate of pay increases (0.7%).

This means the average worker's wages are still falling in real-terms, according to the latest available figures.

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Inflation falls to 1.5% in May

CPI inflation has now been at or below its 2% target for six months.