2023-08-15 06:59:54
Britain’s wage gains have accelerated to a record pace, fueling fears that a tight labor market is fueling inflationary pressures.
Average weekly wages (excluding bonuses) increased by 7.8% in the April-June period compared to the same period last year, the Office for National Statistics (ONS) said on Thursday. This was the fastest growth since the statistics began in 2001 and exceeded economists’ expectations of 7.4%. The figure for March-May was also revised upward to 7.5%.
The Bank of England is worried that rising wages are pushing up prices across the economy, and policy makers led by Governor Bailey have warned once morest further signs that these pressures are continuing. He said further rate hikes are possible.
After the release of the statistics, the pound widened its gains. Markets are fully pricing in a 0.25 percentage point rate hike next month and another 0.5 percentage point hike by next March. In that case, the UK policy rate would be 6%.
The Bank of England’s next policy announcement is on September 21. On the 16th, the consumer price index (CPI) for July will be released. Economists expect inflation to fall to 6.7%, still more than three times the central bank’s 2% target.
UK Wage Growth is the Highest on Record
Source: Office for National Statistics
Original title:UK Wages Grow at Record Pace Add to BOE’s Inflation Concerns (2)、UK Wages Grow at Record Pace Add to BOE’s Inflation Concerns (1)(excerpt)
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