Wages are set to rise faster than prices for the first time in more than a year, figures this week are expected to show.
The major milestone will be seized on by Ministers after many months of negative headlines about escalating mortgage rates and soaring inflation.
It will also be greeted with relief by struggling households as a sign that the cost of living squeeze is starting to ease.
Experts say average earnings excluding bonuses are expected to have risen by slightly more than 7 per cent in the year to June as workers continue to bid up salaries to attempt to keep pace with rising prices.
Meanwhile inflation – which had been rising at double-digit rates – is forecast to have fallen further, to around 6.8 per cent in July. It means prices are still going up, but more slowly.
Fighting back: The major milestone will be seized on by Ministers after many months of negative headlines about escalating mortgage rates and soaring inflation
There could be more good news for Prime Minister Rishi Sunak, who has promised to halve inflation to 5 per cent by the end of the year.
Plans to impose costly post-Brexit border checks on food imported from the European Union from October onwards may be delayed again, according to reports.
The Bank of England is understood to have factored in the inflationary impact of these checks when it raised interest rates to 5.25 per cent earlier this week.
Sandra Horsfield, at investment bank Investec, thinks food price inflation – currently 17.3 per cent – could more than halve by the end of the year if the border checks are postponed.
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