UK pay growth slows to 3.9% before crunch interest rates decision
Summary
Wage growth in the UK slowed to 3.9% in the three months to July, as workers faced higher living costs partly due to the war in Iran. The Bank of England is preparing to decide on interest rates amid rising energy prices and a cooling jobs market.Key Facts
- Average total earnings growth, including bonuses, fell from 4.1% to 3.9% between June and July.
- The state pension increase will be based on the highest of 2.5%, inflation, or average wage growth.
- UK companies are continuing to reduce staff, especially in retail and hospitality sectors.
- Job vacancies are at their lowest level outside the pandemic period in over ten years.
- The Bank of England plans to decide on interest rates soon, with most expecting rates to stay at 3.75%.
- Rising oil prices above $107 a barrel are increasing energy costs for consumers.
- UK unemployment stayed steady at 4.9%, against predictions it would rise.
- Inflation is expected to rise above 3% in August, above the Bank of England’s 2% target.
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