This is our fourth Living Standards Outlook, exploring how household incomes and inequalities may change over the next five years, based on the latest economic forecasts and Government policy. We explore how Covid-19 has buffeted incomes over the last two years; what exceptionally high inflation, the conflict in Ukraine and policy changes will mean for UK living standards this year; and the longer-term prospects for recovery. Our projections use Bank of England and Office for Budget Responsibility forecasts for prices, wages, employment and more, but our modelling looks beyond averages to show what these aggregate forecasts could mean for real living standards across society.
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