Latest data from the Office for National Statistics (ONS) showed average base pay not including bonuses, rose by an annual rate of 5.9%, up from 5.6% in the previous quarter.
Regular pay, excluding bonuses, grew by 5.9%, while total pay, including bonuses, rose by 6.0% in the final quarter of 2024.
“This slight acceleration in earnings growth may complicate the Bank’s decision-making, as it must balance concerns over a slowing economy with the risk that strong pay growth could sustain consumer spending and slow disinflation.”.
However, Bank of England rate setters will be worried that persistent wage inflation will feel into shop prices and keep inflation above the 2% target for longer.
Richard Carter, head of fixed interest research at wealth management group Quilter Cheviot, said: “Wage growth remains a key concern for the Bank of England.
