Economic forecaster the EY ITEM Club has said that wages could rise by more than inflation as early as this month.

It will be the first time in six years that earnings have exceeded the cost of living.

In a statement, EY said: “We expect wage growth to overtake CPI inflation as early as April."

"Until now the recovery has been financed by a fall in the amount households save, but it appears to be moving to a firmer footing," said Peter Spencer, the club's chief economic advisor.

"The consumer upturn will be given a boost from real wages and rising employment, while investment is finally kicking in."