UK wages continue to outpace inflation, figures show

Published On Feb 18, 2025, 2:18 AM

Recent data indicates that average wages in the UK are currently outpacing inflation, with a reported real wage growth of 3.4% from October to December. This growth has occurred despite an unchanged unemployment rate of 4.4%. However, businesses are expressing concerns about the potential financial strain on their workforce due to increased National Insurance contributions and the rising minimum wage. Some economists predict a decrease in wage growth moving forward and caution against immediate actions from the Bank of England regarding interest rate cuts, despite recent wage increases. The hospitality and retail sectors may struggle the most under these economic pressures, particularly with rising costs being passed onto consumers, which could further inflate prices.