The TUC has said inflation is not falling fast enough to coincide with low wage growth.
The comments follow the latest inflation figures published by the Office for National Statistics – which show that CPI inflation fell to 2.5 per cent and RPI inflation to 2.9 per cent in August.
TUC General Secretary Brendan Barber said: “Inflation is not falling fast enough, particularly as wage growth is so anaemic.
“Real wages have been shrinking for nearly four years now and the prospect of an ease in living standards any time soon looks remote.
“Worse news lies ahead for low-paid workers if the Government decides to freeze benefits. The combination of low wage growth, higher indirect taxes, in-work benefit freezes and tax credit cuts add up to an unprecedented attack on the living standards of low-paid workers and their families.”