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Hello and welcome to CoffeeHas.shop's spectator's daily politics podcast.

I'm Katie Balls and I'm joined by Kate Andrews and Isabel Hardman.

Good new figures are out today, which show pay has fallen further behind the rising cost

of living.

Kate, can you just talk as we have you got to this point and what it means?

So there are a lot of statistics out this morning on the labour market.

Some of them are relatively positive.

Unemployment is still at record lows in the month of June alone.

It's at at 3.6% and I think all of this is a huge tribute to the furlough scheme.

Keeping unemployment low is like the major factor that's still keeping stagflation at

bay in the UK because we have high inflation.

We have in many ways a stagnant economy, but we still have unemployment at record lows.

It doesn't appear to be rising by any rapid rate.

I think it went up by 0.1%.

So that factors is really quite crucial when it comes to keeping away the dreaded stagflation.

But all of that is secondary today to the headline point that wages have taken their biggest

plunge on record.

Now the reason for this is fundamentally inflation and it's a reminder of the ways that inflation

...