Record wage growth fuels fresh inflation fears
Official figures show UK wages have risen at a record annual pace fuelling fears that inflation will stay higher for longer.
Regular pay grew by 7.3% in the March to May period from year earlier, equalling the highest growth rate last month.
But despite the increase, pay rises still lag behind inflation.
The speed of wage rises has come under focus by the Bank of England as it tries to control inflation.
The Bank has raised interest rates 13 times in a row in an attempt to reduce the rate of inflation but it has remained high. It currently stands at 8.7% – well above the Bank of England’s target of 2%.
