City AM – Pay growth will force rates higher 

Wage growth has ‘passed its peak’ as Andrew Bailey prepares to address City on interest rates 

CITY AM says Workers returning to the jobs markets and boosting the volume of candidates available to businesses are poised to put a lid on wage growth, analysts are predicting official numbers this week will show.

Pay growth is said to have “passed its peak” after raging for more than a year, fuelled by staff demanding wage increases to compensate for inflation whittling away their finances.

Regular pay – which strips out bonuses and other one-off payments – is predicted by the City to have grown 7.1 per cent over the three months to May – Office for National Statistics (ONS) figures on Tuesday are tipped to unveil – down slightly from the 7.2 per cent jump clocked in the previous quarter.

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