New interest rates rise warning after wages surge
Evening Standard|February 14, 2023
CITY economists warned of another interest rate rise next month after official figures showed wages surging faster than expected at the end of last year.
Jonathan Prynn
New interest rates rise warning after wages surge

Average pay was 6.7% higher in the October to December quarter than a year previously, according to the latest data from the Office for National Statistics (ONS). That is the fastest rate of growth outside the pandemic and stronger than expected by most economists. Wages grew 7.3% in the private sector - another record for outside the Covid era- and 4.2% for the public sector.

Ashley Webb, UK economist at City forecaster Capital Economics, said: "December's labour market data showed that, despite an easing in labour demand, labour market conditions stayed tight and the market continued to support strong wage growth.

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