UK wages grew faster than expected in the three months to April, largely because of new private-sector pay deals and an increase in the national minimum wage. The Office for National Statistics said average private sector wages, excluding bonuses, were 7.6 per cent higher over the period than a year earlier, while average public sector wages were 5.6 per cent higher. Total pay for all employees including bonuses increased by 6.5 per cent over the period – still not enough to keep up with the rise in households’ cost of living.The increase, which was above economic forecasts, means it’s highly likely that the Bank of England will raise interest rates for a 13th time next week from the current benchmark rate of 4.5 per cent to try to cool inflation.
