Wages are rising faster than they have in two years

Average earnings in the UK are rising. The latest release from the UK's number guys – the Office of National Statistics (ONS) – has shown a move from part-time to full time work, and more people in employment. Both of which = pay rise. Woop.

What it means:  Yesterday we found out that the rate prices are rising (the inflation rate What's this? ) is slowing down. When you couple that with an increase in salaries, that means we suddenly have a bit more cash in our pockets. Including bonuses, average earnings in the first three months of the year were 2.8 per cent higher than the same period last year.

More cash in our pockets means we might start spending more money. Lots of analysts think that this means the Bank of England might raise interest rates. The Bank of England What's this?  tries to encourage people to keep spending when times are hard by lowering the charge, or amount of Interest What's this? , you pay on borrowing money – it's called monetary policy. That means when wages rise and prices start to fall and people feel a bit richer they can raise interest rates again. Analysts are saying we can expect a rise in interest rates soon, which will make it more expensive to borrow, but you can also earn more when you save. Swings and roundabouts.