BOE Back to Messed Up, UK Wage Growth Soars!

thecekodok

 Concerns about inflationary pressures are rising again in the UK after the latest data showed wage growth rose strongly in the three months to June.


Average earnings excluding bonuses rose 7.8% in June, compared to 7.5% recorded in May.


While average earnings including bonuses jumped 8.2% from 7.2% previously, at a stronger rate than analysts' estimates of 7.3%.


The unemployment rate showed an increase at 4.2% from 4.0% in the previous reading and market expectations.



In addition, the number of people in work was reported to have fallen by 66,000 in the quarter to June, the biggest drop since August.


Higher readings in wage increases indirectly raise concerns about rising prices (inflation) in the economy.


The Bank of England (BOE) led by Governor Andrew Bailey previously said further signs of inflationary pressures could result in another increase in interest rates.


Following the data, the initial reaction showed that the pound currency jumped to around 1.2710 against the greenback dollar.

Tags