With wage growth accelerating and inflation slowing, Britain's household financial crisis is about to end

　　UK households are set to outperform inflation for the first time since it took off, new figures are likely to show, signalling a continued easing of their cost-of-living crisis.

　　The median forecast of economists surveyed by Bloomberg is for pay growth to hit 7.3 per cent in June. The Bank of England's (BoE) previous forecast suggested inflation would fall to 6.8% in July, while the momentum in wage growth would continue as a shortage of workers prompted firms to keep raising wages.

　　The bank's further outlook is for inflation to fall to 4.9% by the end of the year, which means wages will far outpace inflation and the crisis in household finances caused by inflation seems to be fully resolved.

　　But the truth may not be so optimistic. With the Bank of England having raised policy rates to unusually high levels 14 times in a row in an effort to curb inflation, any wage increases are likely to be used only to compensate for higher mortgage rates or associated rent increases.