MNI BRIEF: UK Earnings Slow, But No Gamechanger For BOE

UK average weekly earnings slowed in the 3 months to August, data released by the Office for National Statistics on Tuesday showed, but still remain at levels that will offer discomfort to policymakers at the Bank of England.

Annual growth in regular pay (excluding bonuses) was 7.8% in June to August 2023, still one of the highest regular annual growth rates since comparable records began in 2001. Annual growth in employees' average total pay (including bonuses) was 8.1% in June to August 2023 -- a number still boosted by the NHS and civil service one-off payments made in June, July and August2023.

Annual growth in real terms (adjusted for inflation using Consumer Prices Index) for total pay rose on the year by 0.8% in June to August 2023 -- the highest rate since October 2021.

With inflation still well above target, the BOE's Monetary Policy Committee continues to monitor wage growth and, although the slowdown will be welcome, the elevated levels will still be a concern for many. (MNI INTERVIEW: BOE Likely To Revise Up View Of Wage Growth)