A key measure of British wages rose at the joint fastest pace on record but official data also showed signs that the inflationary heat in the labour market is cooling, offering the prospect of relief for the Bank of England.
“The Bank will likely want to see an easing in the wage growth numbers before it can think about declaring an end to the fight against inflation.” The BoE is monitoring pay growth closely as it assesses how much inflationary pressure remains in Britain’s economy. Consumer price inflation held at 8.7 per cent in May, higher than in any other big rich economy.
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