UK: According to a report from the Office for National Statistics (ONS) released on Tuesday, household incomes in the UK are falling at their fastest rate in more than ten years as families struggle to keep up with expenses and wages are falling behind rising prices.

According to data on the labour market, regular pay decreased by 2.3% between December 2022 and February 2023, while total income growth in real terms, adjusted for inflation, fell by 3%. The figures show the sharpest drop in regular pay since 2009, when average weekly wages fell 4.5%, according to the ONS.

The rate of wage increases is a closely watched indicator as the UK's cost of living crisis worsens.

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According to the ONS, prices of consumer goods and services rose at the fastest rate in four decades in the year leading up to October 2022. The cost of fresh food, non-alcoholic beverages, and energy bills all increased significantly in March, pushing annual inflation from 8.8% in January to 9.2% in February and 10% in March. After three months of gradually rising prices, the surprise inflation spike in February and March came as a shock, and the rate has since stabilised at levels last seen about 30 years ago.

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While food and energy prices in the UK are still out of control, a number of industries have recently seen widespread strikes by employees over issues with pay and working conditions. Strike-related days lost increased to 348,000 in February from 210,000 days in January.

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Workers in the UK's public and private sectors have been striking since last year in an effort to secure pay increases as the value of wages has been diminished by high inflation.