Wage growth has remained strong, the latest official figures show, as the Bank of England mulls its interest rate decision.
Wages – excluding bonuses – grew 5.9% in the three months to January, the same amount as a month earlier, data from the Office for National Statistics (ONS) showed.
Meanwhile, growth in average weekly earnings, including bonuses, fell to a surprise 5.8%. Economists polled by the Reuters news agency anticipated a 5.9% increase.
Money blog: top chef reveals pet hate in restaurants
It means wage growth is still high and well above the rate of overall price rises. Inflation stood at 3% in January.
Both private and public sectors have seen rises, the ONS said, describing the growth as “strong”.
It comes as the Bank of England is widely expected to hold interest rates at 4.5% at its meeting today, in part because of the inflationary impact of wage growth.
UK and global economic growth forecasts cut – as Trump tariffs blamed
Why the economy is not yet listening to the chancellor’s battle cry
Economy finds reverse gear in January with surprise contraction
Wage increases have surpassed the level of inflation since July 2023, something that could stop the interest rate setters at the Bank from cutting rates at future meetings.
Little change elsewhere
There was little change in the rate of unemployment which remained at 4.4%.
The labour market picture is “relatively unchanged”, the ONS’s director of economic statistics, Liz McKeown said.
The number of employees on payrolls is “broadly flat” with little growth seen over the last year, she added.
Follow our channel and never miss an update
The ONS, however, has advised caution in interpreting changes in the monthly unemployment rate due to questions over the reliability of the figures.
The exact number of unemployed people is not known – partly because people don’t answer the phone when the ONS calls.
Be the first to get Breaking News
Install the Sky News app for free
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the fullest version.
You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.
