inflation, the economy is doing better, we ought to bring down the tax burden and this 2% cut will make a very big difference to families up and down the country. the a very big difference to families up and down the country. and down the country. the change means if you and down the country. the change means if you want and down the country. the change means if you want £35,000 - and down the country. the change means if you want £35,000 a - and down the country. the changel means if you want £35,000 a year, the average uk wage, you could sound thatis the average uk wage, you could sound that is a month. someone earning £50,000 you could be £62 a month better. the treasury says 2 million people who are self employed will also benefit, but not until april, with the plans to scrap voluntary contributions they make on bond ron hoenig. it s also worth noting that contributions in the high taxman, £50,000 or so, that contributions in the high taxman, £50,000 orso, will that
average uk wage, more than 110 times the average uk salary and this has come out this data at a time when actually some bosses in the city had been arguing that actually rules should be relaxed a little, the committed should pay a bit more because of the global fight for talent that there is for executives. to be fair, if you look at what uk executives are paid on the ftse100 compared to the us, it pales into comparison because they re the average for workers paid way less than bosses. us bosses are more than 170 times the average worker in three times the amount of the average uk chief executive who runs average uk chief executive who runs a company on the ftse100. so that
increase won t come. let s not forget that yesterday we heard that average uk wages were rising at their fastest pace in 20 years. katharine neiss, chief european economist at pgim fixed income, said while it was enouraging for uk consumers, it s unlikely to stop interest rates going higher. it s encouraging, as you say, that headline inflation is coming down. no doubt uk consumers will be relieved to see that energy prices and food price inflation is beginning to cool. but that said, core inflation, that is a measure of inflation that gives us perhaps a better read on domestic inflationary pressures. that s not really showing any signs of coming off. and so that means that while encouraging in these data, we re not quite there yet in terms of seeing inflation really dropping off in a sustainable way and uk inflation still well ahead and uk inflation still well ahead
we heard that average uk wages were rising at their fastest pace in 20 years. katharine neiss is chief european economist at pgim fixed income. thanks very much for being with us today, katharine neiss. so clearly welcomed news that inflation has fallen to this point. still quite far off the bank of england s target, though. is everything going to plan or as we had expected? 50. to plan or as we had expected? so, toda s to plan or as we had expected? so, today s data to plan or as we had expected? srr, today s data are to plan or as we had expected? s57, today s data are not to plan or as we had expected? s513, today s data are not a to plan or as we had expected? sr3, today s data are not a surprise. it is encouraging, as you say, that headline inflation is coming down. no doubt uk consumers will be relieved to see that energy prices and food price inflation is beginning to cool. but, that said, core inflation, that is a measure of inflation that gives us perhaps a better read on d
increase won t come. let s not forget that yesterday we heard that average uk wages were rising at their fastest pace in 20 years. joining me now is neil shearing group chief economist at capital economics. thanks very much for being with us today. clearly it is pretty good news, but is it happening fast enough, oras news, but is it happening fast enough, or as fast as we had hoped? the fall in the headline rate of inflation, as you say, that s going to be welcomed by the bank of england. it takes a bit of pressure off them. but when you start to dig into the details of this report, i think perhaps there is still some uncomfortable reading there for the policymakers of the bank. as you mentioned, a lot of the fall in the headline rate, that is driven by what has happened to food and energy prices and that is out of the bank s control. interest rates don t tend to affect the price of our energy or