Average earnings in the UK are rising. The latest release from the UK's number guys – the Office of National Statistics (ONS) – has shown a move from part-time to full time work, and more people in employment. Both of which = pay rise. Woop.
What it means: Yesterday we found out that the rate prices are rising (the ) is slowing down. When you couple that with an increase in salaries, that means we suddenly have a bit more cash in our pockets. Including bonuses, average earnings in the first three months of the year were 2.8 per cent higher than the same period last year.
More cash in our pockets means we might start spending more money. Lots of analysts think that this means the Bank of England might raise interest rates. The tries to encourage people to keep spending when times are hard by lowering the charge, or amount of , you pay on borrowing money – it's called monetary policy. That means when wages rise and prices start to fall and people feel a bit richer they can raise interest rates again. Analysts are saying we can expect a rise in interest rates soon, which will make it more expensive to borrow, but you can also earn more when you save. Swings and roundabouts.
…and who’s getting the bill for all this? Money is such a core part of the economy, and a lot of economic power lies in the hands of those who print it, earn it, and spend it. But money’s not just as a tool for exchange; it’s taken on a value in itself, and there’s a whole economy around money alone…