Two days ahead of a likely confirmation that the UK economy slipped into recession in the second half of 2023, latest figures from the Office for National Statistics (ONS) showed regular pay went up by an average of 6.2% in the three months to December.
That was faster than the 6% expected by City economists and represents an uncomfortably high number for the Bank's Monetary Policy Committee (MPC) as it contemplates the timing for a first cut in interest rates, expected in May or June.
The MPC is thought unlikely to want to sanction a reduction in the cost of money while wages are rising so much faster than inflation, stoking up demand in the economy. Real regular wages rose by 1.9% - the highest since summer 2019, excluding the pandemic years.
Danni Hewson, head of financial analysis at brokers AJ Bell, said pay growth was still "uncomfortably high".
Bu hikaye Evening Standard dergisinin February 13, 2024 sayısından alınmıştır.
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Bu hikaye Evening Standard dergisinin February 13, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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