Real wage growth continued to decline in 2012, according to the latest preliminary figures from the Central Statistics Office. Average weekly earnings grew 0.6 per cent, the first year of growth since 2008, but CPI inflation for the year was 1.7 per cent.

In the fourth quarter average weekly earnings fell 0.3 per cent to €695.80 and third-quarter figures were revised downwards from 1.1 per cent to 0.6 per cent.

Davy Research analyst Conall Mac Coille said the figures were disappointing. “Pay growth now appears significantly weaker than previously thought,” he said.