UK wages grow faster than expected

Wages grew faster than expected in the three months to April, according to figures released on Tuesday by the Office for National Statistics, dashing hopes of a rate cut this summer.

Total pay including bonuses rose 5.9% in the three months to April, coming in above expectations of 5.7% growth. Meanwhile, growth for the previous three-month period was revised up to 5.9% from 5.7%.

Average regular earnings, which exclude bonuses, grew by 6% during the three months to April, unchanged from the previous three months and versus expectations of 6.1% growth.

Adjusted for consumer price inflation, total pay including bonuses grew 2.7% in February to April. This marked the fastest rate of growth since July to September 2021.

The data showed that the unemployment rate increased to 4.4% in the three months to April from 4.3% in the previous three months.

The ONS said: "This month's figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong."