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Pay rising faster than inflation as Bank warns on growth

Average earnings are rising faster than the rate of inflation after years of falling living standards, new figures show.

The Office for National Statistics data came as Mark Carney, the Governor of the Bank of England (BoE) said inflation is more than likely to fall below 1%, and economic growth will be slower than previously expected.

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Ed Balls 'hopes' cost of living crisis is 'at an end'

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Labour's shadow chancellor Ed Balls has said he hopes that the recent signs that pay is rising faster than inflation could signal the end of the "cost of living crisis".

When asked by the BBC if the recent announcement by the Bank of England marked "the beginning of the end for the cost of living crisis", Mr Balls said:

Well, I hope so, but I have got to say, wages rising by 1.3% hailed as ‘remarkable’ by a Conservative minister, that just shows how out of touch Iain Duncan Smith and George Osborne are.

The average working person in our country is £1600 a year worse off. Month after month for years, prices have been going up faster than wages, we’ve now had one month where wages went up by 0.1% more than prices, because prices are really low at 1.2%, as the Governor of the Bank of England says.

– Ed Balls, Shadow Chancellor

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