The Employment Rights Act is changing the workplace. Are you ready? ❯

Brightmine logo
Request a quote
Home > Resources > Total rewards > Pay trends > How to use inflation statistics in pay setting
Individual seated at a desk holding a smartphone while looking at a tablet placed on the table.

How to use inflation statistics in pay setting

Inflation statistics are often used as a reference point when reviewing pay, but they need to be interpreted carefully. This guide explains what inflation measures show, how they are calculated and how employers can use inflation data appropriately when setting and reviewing pay.

Share this:

By Sarah Welfare, Brightmine HR Practice Editor

Historically, movements in inflation have been keenly watched by both the employee and employer sides of the pay bargaining table. Securing an annual pay rise that matches or exceeds the cost of living has long been an objective in trade union bargaining. While many employers now seek to link pay rises to performance or market rates rather than inflation, a majority still take the inflation rate into account when carrying out an annual pay review, the recent HR & Compliance Centre pay forecasts survey finds.

Sign up today to get:

  • What is inflation and how it is measured?
  • Consumer price inflation and the “shopping basket”
  • What are the main consumer price indices?
    • CPI
    • RPI
    • CPIH
    • RPIX
  • Other inflation measures
  • Advantages and disadvantages of the different inflation measures
  • How do employers use inflation?
  • Inflation statistics on HR & Compliance Centre

Want to see more?

For full access to How to use inflation statistics in pay setting, sign up to a HR and Compliance Centre subscription today.

Request a quote

Latest updates

Updated to reflect the latest findings from Brightmine on inflation in pay setting.

Navigate HR complexity with confidence

With Brightmine, you can build powerful people strategies, implement best practices and set your organisation up for a brighter future.

Learn how our tools, resources and automation can empower you and your team.

Learn more

Read more articles:

You may also be interested in…
Whitepapers

Job architecture: A clear framework for roles, levels and progression

Brightmine job architecture gives you a clear, structured view of the roles in your organisation and how they …
Guides – How to

How to use a salary survey

Salary surveys help employers benchmark pay, assess market competitiveness and make informed reward decisions. This guide explains what …
Reports

2026 Executive remuneration

Stay competitive with the 2026 Executive Remuneration Report. Access data-driven benchmarks and trends shaping executive compensation.

About the author

Sarah Welfare

Sarah Welfare was formerly an HR practice editor at Brightmine, with responsibility for content on pay, benefits and international HR.

Sarah has more than 15 years’ experience in the HR/employment field, having worked on both sides of industry at the CBI and then at the Amalgamated Engineering and Electrical Union. After that, she was employment policy director for the Equal Opportunities Commission, where her main role was to promote the use of equal pay audits in the private sector.

Sign up to receive expert HR insights from Brightmine

Join our community and stay updated with industry trends, expert insights, valuable resources, webinar invites… and much more.

Sign up now and receive regular updates straight to your inbox!

    LNRS Data Services Limited and its affiliates may contact you about relevant solutions, services, events and industry insights. You can opt-out via the unsubscribe link in the communications that you receive or by contacting us.