Settlements continue to show a rise of 3.0%, according to data from the Labour Research Department's Payline database. This has been the midpoint (median) for increases across the whole economy for the three months to May and the year so far.

The median settlements vary by sector: the private sector saw average increases of 3.0% in the three months to May, but the public sector only averaged 1.8%. Private sector increases have averaged 3.0% for 2012 so far, but public sector increases have ranged from 1.5% to 1.9% this year, 'reflecting increases for some lower-paid staff under the government's pay freeze policy'.

In manufacturing, increases averaged 3.0% for May - the same figure for the rest of 2012 but in services the median was up to 3.3%, after running at 3.0% for the first four months of the year.

With the latest figures for inflation showing the Retail Prices Index (RPI) up by 3.1% for the year to May, the gap between pay increases and inflation has narrowed sharply for most sectors apart from the public sector.

Notes for editors