UK wage growth slowed marginally in the three months to August, according to official data that will offer the Bank of England limited reassurance that pressures in the labour market are easing. The Office for National Statistics said on Tuesday that average total pay was 8.1 per cent higher over the three-month period than a year earlier, down from a growth rate of 8.5 per cent the previous month, but still close to record highs. Regular pay growth, excluding bonuses, slowed from 7.
25 per cent for most of next year to squeeze inflationary pressures out of the economy. Policymakers are likely to want to see more convincing signs that the labour market has turned, and pay pressures eased, before they contemplate any easing in monetary policy. Huw Pill, BoE chief economist, said at an online event on Monday that wage growth — as measured by a range of indicators — was running at a pace that was “not consistent with price stability”.
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