The real value of UK workers’ pay has continued to fall at the fastest rate for more than a decade, as wage increases in February were outstripped by high inflation.
The Office for National Statistics said annual growth in average pay, excluding bonuses, held steady at 6.6% in the three months to February despite a small rise in unemployment and decline in the number of job vacancies. Fuelled by bumper pay for bankers and accountants in the City of London, wage growth including bonuses rose by 5.9%. Economists had forecast weaker rates of pay growth, in a potential dilemma for the Bank of England as it considers whether to raise interest rates for a 12th consecutive time in May.
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