A weaker than expected easing in the pace of pay rises means real earnings growth, when inflation is taken into account, is at its highest rate in almost two and a half years, according to the latest official figures. The Office for National Statistics said average regular pay, excluding bonuses, stood at 6% in the three months to February compared with a year earlier. In real terms, when the rate of inflation is reflected, pay growth by the same measure was 2.
data showed a shift in bets away from June in the wake of the ONS data. The Bank of England's action to tame price growth was the major factor behind the economy slipping into recession in the second half of last year. Data since then has shown a return to meagre growth. Paul Dales, chief UK Economist at Capital Economics, said of the crucial pay data: 'Weaker activity suggests wage growth will ease more rapidly before long.