UK Wage Growth Set to Accelerate, Complicating Path to Rate Cut
- Official data due Tuesday highlights inflationary pressures
- Policy makers watching for signs of sticky wages and prices
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UK wage growth may accelerate for the first time in nine months, an uncomfortable pick-up for the Bank of England at a time it’s looking for inflationary pressures to moderate before it cuts interest rates.
Economists expect official data on Tuesday will show regular pay increases accelerating to 6.1% in the three months to April, according to a Bloomberg survey as of Friday afternoon. The data covers the crucial month of April when the minimum wage jumped by almost 10%.