Growth in British workers' regular pay - which is being watched closely by the Bank of England - slowed from a previous record high and job vacancies also declined, official figures showed on Tuesday, in a sign that the labour market is losing momentum.
British average earnings, excluding bonuses, were 7.8% higher than a year earlier during the three months to August, down from an upwardly revised 7.9% in the three months to July, the first such fall since January.
"While wage growth is still much too strong for the Bank of England's liking, there's nothing in the latest data that's likely to push the committee into a rate hike at the November meeting," ING economist James Smith said. However, with consumer price inflation of 6.7% in August, the real-terms increase in pay was far smaller.
Prime Minister Rishi Sunak said at the start of the year that his top goal was to halve inflation, which peaked at a 41-year high of 11.1% in October 2022.Bank of England Chief Economist Huw Pill said on Monday that fast rates of nominal pay growth stood at odds with most other labour market measures, which have pointed to a slowing economy.The number of job vacancies in the three months to September fell to a two-year low of 988,000, Tuesday's data showed.
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