UK pay growth slows to 3.9% ahead of key interest rate decision
Official figures show wage growth easing as the Bank of England weighs its next move amid a fresh cost-of-living squeeze
Wage growth in the UK slowed in the three months to July, according to figures released by the Office for National Statistics (ONS), as workers faced renewed pressure from a cost of living squeeze that officials linked to disruption from the Iran war.
The ONS said average growth in total earnings, including bonuses, eased to 3.9% in the three months to July, down from 4.1% in the three months to June. The figure matched the forecasts of City economists surveyed ahead of the release.
The data is being closely watched by the Bank of England, which is preparing to set interest rates and will weigh the pace of wage growth against inflation pressures in its decision.
The figures are also likely to influence the size of the annual increase to the state pension under the government's triple lock policy, which uses wage growth, among other measures, to determine the uprating.
According to the source report, the slowdown in pay growth comes as workers face a renewed squeeze on living costs, which has been fuelled in part by rises in oil prices linked to the conflict involving Iran.
The Guardian reported that the wage data presents a challenge for the Bank of England as it balances the risks of persistent inflation against signs of a cooling labour market.
Sources
- UK pay growth slows to 3.9% before crunch interest rates decision — The Guardian — World
EGazette summarizes reporting from multiple sources; follow the links for the originals.
Related articles
Fed Chair Kevin Warsh Wins Unanimous Vote to Raise Interest Rates Amid White House Pressure
The Federal Reserve, led by chair Kevin Warsh, voted unanimously to raise interest rates for the first time in three years, according to a report by The Guardian.
Fed Raises Interest Rates for First Time This Year, NPR Explainer Breaks Down the Mechanics
NPR News reports the Federal Reserve increased its benchmark rate this week, and outlines in a new explainer how the move ripples through the economy.
Eurozone Consumers Raise Inflation Expectations Across All Horizons: ECB
European Central Bank survey finds households now expect higher inflation over the next one, three and five years
Bank of Japan Raises Interest Rate to 31-Year High Amid Inflation Concerns
The central bank lifted its policy rate by 25 basis points to 1.25% in a split 7-2 vote, citing inflation risks, according to Anadolu Agency.
Japan Raises Interest Rate to 31-Year High Amid Inflation Concerns
The move follows a global trend of central banks tightening policy as high energy prices push up inflation, BBC Business reported.
Ukraine's Central Bank Says Inflation Could Top Earlier Forecast
The National Bank of Ukraine says the inflation trajectory in coming months may run higher than previously projected.
Comments
Loading comments…