UK Wage Inflation Picked Up to 10-Year High
The UK has published employment data. According to the report of the Office for National Statistics (ONS), the unemployment rate was 4.1% in October, unchanged from a month earlier and in line with expectations. The claimant count, which measures the change in the number of people claiming unemployment benefits rose 21.900 in November from 23.200 in the three months to October. Economists had forecast an increase of 13.200.
Meanwhile, average earnings, excluding bonuses, rose by an annual 3.3% in the three months to October, above expectations for them to hold steady at 3.2%. That’s the fastest pace since the end of 2008. Including bonuses, pay growth increased by an annual 3.3%, above expectations for 3.0%.
The Bank of England, which has said it will need to raise interest rates gradually to offset inflation pressures from the labor market, has forecast slower wage growth for the end of 2018 than today’s official data suggest.