UK Wage Growth Slows to 3.9% Ahead of Bank of England Interest Rate Decision
Quick Brief
British wage growth eased during the three months leading up to July, according to data from the Office for National Statistics. Average total earnings growth including bonuses dropped to 3.9%, aligning with predictions from City economists. The slowdown comes as employees navigate a renewed cost of living pressure driven by oil price increases.
What Happened?
Data published by the Office for National Statistics revealed that average total earnings growth in the UK, inclusive of bonuses, cooled to 3.9% for the three-month period ending in July. This represents a decrease from the 4.1% rate recorded in the three months to June, matching expectations set by City forecasters.
Why It Matters
The deceleration in pay growth highlights the ongoing economic challenges faced by workers confronting renewed cost-of-living pressures driven by oil price spikes connected to the Iran war. This figure also presents a complex backdrop for the Bank of England as policymakers prepare to make their upcoming decisions regarding interest rates, and it is expected to influence adjustments to the state pension triple lock.
Key Facts
- Average total earnings growth including bonuses slowed to 3.9% in the three months to July.
- The figure dropped from 4.1% in the previous three-month period ending in June.
- The slowdown matched the forecasts predicted by City economists.
- Data was released by the Office for National Statistics (ONS).
- Workers are facing a renewed cost of living squeeze fuelled by oil price rises.
What Happens Next?
The Bank of England is preparing for an upcoming interest rate decision.
Compiled from 2 outlets
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