UK State Pension On Track to Exceed £13,000 as Wage Growth Slows to 3.9%

Wage growth in the United Kingdom has slowed as workers face renewed pressure from a cost-of-living squeeze linked to the war in Iran, according to figures released by the Office for National Statistics (ONS).

The ONS data shows 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 matches forecasts from City economists, according to the report.

The slowdown in pay growth comes as the Bank of England prepares to make its next decision on interest rates, a task made more complex by the combination of easing wages and inflationary pressures stemming from global oil markets affected by the Iran conflict, the report said.

Separately, the state pension is on track to rise above £13,000 a year, according to the report, though specific figures on the size and timing of the increase were not detailed in the available information.

The Bank of England's interest rate-setting committee is weighing the implications of slowing wage growth against continued inflationary risks as it finalises its policy decision, the report noted.