UK Wage Growth Slows Amid Ongoing Iran War Pressure

UK wage growth slowed to 4.1% in June 2026 as workers faced increasing pressure from rising living costs linked to the ongoing Iran war, according to official figures.

The Office for National Statistics reported that annual growth in average earnings including bonuses stood at 4.1% in the three months to June 2026, down from 4.3% in the three months to May.

Public sector regular earnings growth remained elevated at 6.1% annually, influenced by the timing of pay awards this year, while private sector growth was 2.8%.

The Bank of England is considering an interest rate increase as early as September to prevent persistently high inflation from becoming entrenched in the economy.