U.K. Wage Growth Picks Up, Jobless Rate Falls Ahead of Bank of England Meeting
By Ed Frankl
Wage growth in the U.K. rose a little in the three months through August, raising the likelihood that the Bank of England will raise its key rate next month.
Annual weekly earnings growth, excluding bonuses, rose to 3.7%, from an upwardly revised 3.6% in the three months through July. Economists polled last week by The Wall Street Journal had expected 3.6%.
The unemployment rate unexpectedly fell to 4.7% in June-August, from 4.9% in May-July. Economists expected the rate to hold steady.
While inflation has risen in recent months, driven by higher energy costs stemming from the war in the Middle East, policymakers at the BOE have noted that there has been little evidence of those costs increasing demands for higher wages.
The pound gained a little against the dollar after Tuesday's data release. Investors expect the BOE to raise its key rate early next month.
Vacancies fell by the largest amount since the start of the year, the ONS said. Smaller firms continued to suggest that they might not be recruiting due to increased labor costs, it said.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
October 20, 2026 02:43 ET (06:43 GMT)
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