Office for National Statistics (ONS) data shows that regular pay, excluding bonuses, rose by 7.8% year-on-year in May to July, matching the inflation rate for the period.
Darren Morgan, director of economic statistics at the ONS, said earnings continued to increase at record rates, while inflation has started to come down, meaning that real pay is no longer falling.
Chancellor Jeremy Hunt said "for real wages to grow sustainably we must stick to our plan to halve inflation."