UK Wage Growth Slows as Jobs Market Weakens Amid Global Uncertainty
UK wage growth has slowed to 3.9% in the three months to July, down from 4.1% in June, according to figures released by the Office for National Statistics.
The slowdown comes as workers face a renewed cost of living squeeze fueled by the Iran war and rising global energy prices.
City investors expect the Bank of England to keep interest rates on hold at 3.75%, but see an outside chance of a quarter-point rise to ward off mounting inflationary pressures.
The Bank has signaled that a weaker labor market could help limit the capacity for stubbornly high inflation becoming entrenched in the economy, but oil prices have risen above $107 a barrel and British consumers are facing higher petrol and diesel prices.
Business leaders have criticized Labour's higher taxes on employment and increase to the minimum wage for adding to a slowdown in the jobs market at a time when other costs are also rising for employers.