LONDON, Oct 20 (Reuters) – Wages in Britain grew by 3.7% in the three months to August compared with the same period last year, official data showed on Tuesday.
Economists polled by Reuters had mostly expected growth of 3.6% in wages excluding bonuses.
The Bank of England is looking for signs that the Iran war energy price shock is turning into broader inflation pressure in the economy including through higher pay.
Investors expect the BoE to raise its benchmark Bank Rate to 4% next month. So far it has not followed the U.S. Federal Reserve and the European Central Bank in increasing borrowing costs following the surge in energy costs.
Governor Andrew Bailey said last week the longer the war goes on, the harder it will be for the BoE not to respond. But he also said it remains “early days” and inflation pressures remained “quite subdued.”
(Writing by William Schomberg, editing by Sam Tabahriti)
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