U.K. Labor-Cost Pressures Look Hotter Than BOE Had Expected
- ONS revises unit labor cost growth higher in first half
- Data has implications for BOE analysis of inflation pressures
This article is for subscribers only.
U.K. labor-cost pressures are stronger than the Bank of England anticipated, giving policy makers an extra incentive to begin raising interest rates for the first time in decade.
Annual growth in unit labor costs was 2.4 percent in the second quarter, the Office for National Statistics said on Monday. It revised the number up from a 1.6 percent rate published last week after an error was found in the data. The first quarter was revised to 3.5 percent, the fastest in almost four years.