‘Real’ incomes to fall for first time since 2013 with inflation outpacing wage growth

With prices continuing on an upward trajectory, “real” household income — a measure that factors in the rate of inflation — is expected to fall this year for the first time since 2013, according to the Central Bank of Ireland’s latest economic forecasts — its first set since the invasion of Ukraine.

The pace of growth is unlikely to keep up with soaring prices, according to the forecasts, although “broad-based” wage growth is anticipated.
It means “wages are projected to decline this year in real terms”, the Central Bank said, in line with recent analysis by the Economic and Social Research Institute.

SEE FULL STORY: https://www.thejournal.ie/central-bank-economic-forecast-2-5730294-Apr2022