UK wages grow faster than expected in the last quarter of 2022

Pressure on the Bank of England

UK wages rose faster than expected in the last quarter of 2022, reflecting that the UK labour market remains buoyant despite ongoing economic pressures.

According to data from the Office for National Statistics, growth in regular pay excluding bonuses was 6.7% in October to December, the strongest growth rate outside of the pandemic period since records began in 2001. The pace of wage growth exceeded the 6.5% economists had predicted, and the increase for the preceding quarter was revised by 0.1% to 6.5%. Average regular pay growth for the private sector was 7.3% and 4.2% for the public sector. This is the largest ever growth rate seen for the private sector on record outside of the height of the pandemic.  Huw Pill: High levels of...