Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of recent trends in the level of (a) wage growth and (b)inflation.

In their March Economic and Fiscal Outlook, the Office for Budget Responsibility expected CPI inflation to fall to 2.0% by 2018 Q4. The latest data show CPI inflation was 2.5% in July.

The OBR expect nominal wage growth to increase in each year of their forecast, with growth over 3.5% by 2021. They expect these increases to occur alongside CPI falling back towards 2%, with real wages growing from 2018.

Nonetheless, the Government recognises the strain on household budgets from the recent period of elevated inflation. The Government has helped with the cost of living by increasing the National Living Wage, raising the personal allowance, freezing duty on fuel and alcohol and tackling housing costs.