UK wage growth data disappoints again
Posted on 12/07/2017 by
Three month average real total pay declined by 0.7 per cent in the Month, the fastest decline since August 2014
Wage growth disappointed again in May according to the latest official data, spelling another fall in real terms pay for British workers ahead of Brexit.
According to the Office for National Statistics, average pay was up just 1.8 per cent year-on-year in the month.
The three month average growth rate for nominal regular pay, excluding bonuses, was 2 per cent, up only slightly from the 1.8 per cent growth recorded in April, and well behind the 2.9 per cent inflation rate in May.
The ONS said that the three month average real total pay declined by 0.7 per cent in the Month, the fastest decline since August 2014.
Biggest drop since August 2014
Inflation has spiked due to the slump in the pound in the wake of last year's Brexit vote.
Bank of England policymakers have said they are watching nominal pay growth data carefully for signs of inflationary pressure.
The latest weak data make an imminent interest rate rise from the Bank less likely.