The thinktank warned on Monday that surging gas, electricity and petrol prices had fundamentally altered the outlook for living standards in 2026. Before the Iran war erupted in late February, working-age households were tracking towards modest income growth of 0.9 per cent. That figure has now swung to a projected decline of 0.6 per cent, a turnaround worth £480 per household.
Many upper-middle-classers don't even realize they've climbed into this tier. Randy Shilling, a 58-year-old chemical plant worker in Texas, saved more than $3 million for retirement. 'I view myself as an average Joe,' he told The Wall Street Journal. 'But when I want something, I go get it.'
Slower job growth. Just look at the November employment report - very soft if you average the last couple of months. But real earnings growth, average hourly earnings growth, up 3.7% on a year-on-year basis. And that helps to weather a little bit of this inflation pressure that we are feeling right now. And I think that's the true storyline.
