UK Wage Growth Beats Forecasts: Average Earnings Rise 3.5% In Three Months

UK average earnings excluding bonuses rose by 3.5% year-on-year in the three months to June, according to official data released today.

This figure surpasses the 3.4% forecast and marks a continued easing from the elevated levels seen earlier in the year.

The Office for National Statistics (ONS) reported that average weekly earnings increased by 3.5% in the April-to-June period compared with the same months a year earlier, excluding bonuses.

This real-term increase is welcome news for workers who have faced a prolonged cost-of-living squeeze, as it means pay is rising faster than prices.

However, the Bank of England has signalled caution, noting that above-target wage growth could complicate its efforts to bring inflation down to the 2% target.