Autumn Budget 2021: Inflation predicted to hit 10 year high

27 October 2021

During 2021, inflation (consumer price index) has gone from a low of 0.4% in February 2021, to a high of 3.2% in August 2021. The September inflation rate was 3.1% and today, (27 October 2021) the chancellor confirmed that the Office of Budget Responsibility (OBR) expect inflation to average 4% over the coming year. Inflation has not reached 4% for almost a decade.

Many businesses base their pay review processes around the rate of inflation. However, with the introduction of the health and social care levy, and the rise in national living wage to £9.50, businesses will need to look carefully at their pay strategy over the coming year.


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