Britain’s labour market lost a bit more of its inflationary heat in the three months to August, data from the Office for National Statistics showed on Tuesday, potentially helping the Bank of England to keep interest rates on hold next week.
The experimental figures included new data sources to compensate for a falling response rate to the Labour Force Survey of households, which usually forms the basis of Britain’s job market statistics. “We doubt that the new statistics will prompt the to resume its tightening cycle at its meeting next month,” said Thomas Pugh, economist at accountants RSM.
Data published by the ONS last week showed average earnings, excluding bonuses, were 7.8 per cent higher during the three months to August than a year earlier, the first such fall in the pace of growth since January but barely down from a record 7.9 per cent in the three months to July.