IN 2014, the food and drink sector went into annualised deflation for the first time in 14 years and in December, the rate of consumer price inflation halved to just 0.5%.
The impact of the economic climate had a negative impact on the living wage as companies were forced to cut back on costs.
This lead to a relatively sustained minimum wage, which saw little increase for five years.
However, as the economic landscape changes in 2015, the combination of low inflation alongside a growing economy could impact on the living wage as it could spark sustained wage growth.
For the majority of the UK the living wage was recently increased from £6.31 an hour to £6.60, which was only the second significant increase in six years. However, campaigners are calling for a rise to £7.00 when the minimum wage is adjusted next year.
The Living Wage foundations suggests that £7.85 an hour for the majority of the UK and £9.15 an hour in London is the minimum amount required for a worker to cover the basic costs of living.