UK Wages Rose at Fastest Pace in 6 Years

Pay for Britain’s workers is rising at the fastest pace for more than six years, even before George Osborne’s national living wage is implemented, in a sign that living standards are continuing to rise.

Official figures showed that average pay across the economy increased by 2.9%, when comparing May to July with the same period a year earlier. The growth rate was the same once bonuses were taken into account.

The Office for National Statistics said that was the fastest pace of wage growth since the three months to January 2009 – and with inflation running at 0.1% in July, that suggests the long-running squeeze on living standards has come to an end.

City analysts said the pay data suggested consumer demand, a key driver of economic growth, would be underpinned by the rise in real wages.

Howard Archer, of consultancy IHS Global Insight, said: “July’s marked strengthening in earnings growth coupled with consumer price inflation dipping to 0.0% in August is very good news for consumers’ purchasing power.”

via The Guardian

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza