UK Wage Growth Hits 3.5% in Q2 Amid Energy Price Jitters

The UK saw a modest increase in regular wage growth, excluding bonuses, reaching 3.5% annualised in Q2 2026, according to the Office for National Statistics.

This figure exceeded the Reuters-survey consensus of 3.4%, marking a slight pick-up from the 3.4% recorded in March-May 2026.

The Bank of England is closely monitoring whether the energy price surge, driven by the Iran war and disruptions in the Strait of Hormuz, is feeding into longer-term inflation and wages.

Financial markets have priced in a 0.25 percentage-point BoE interest rate increase by the end of 2026, reflecting caution amid volatile energy markets and inflation risks.