UK’s Unexpected Jump in Wage Growth Fuels Inflation Concerns

  • Tight labor market is a concern for the Bank of England
  • Inflation data due Wednesday may swing next rate decision
WATCH: UK wage growth unexpectedly climbed 6.6% in the three months through February compared with a year ago. Lizzy Burden breaks down the numbers.Source: Bloomberg
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UK wage growth accelerated unexpectedly, adding to inflationary pressures that are concerning the Bank of England.

Average earnings excluding bonuses rose 6.6% in the three months through February compared with a year ago, the Office for National Statistics said Tuesday. That was quicker than the 6.2% pace economists had expected. The previous month’s reading was also revised up, dashing hopes for a slowdown.