Economy

UK wage growth slows, easing inflationary concerns

New figures fuel hopes that the UK labour market has steadied, potentially prompting Bank of England to consider cutting rates

New figures indicate the central bank’s effort to slow demand in the economy are taking the heat out of the labour market, which has fanned upward pressure on prices. Picture: Getty

UK wage growth slowed in the three months to January, fuelling hopes of a normalisation in the country’s labour market.

The latest figures from the Office for National Statistics said average earnings, including bonuses, were 5.6 per cent higher in the three months to January compared to the previous year.

The figure is down from 5.8 per cent growth between October and December last year.

Excluding bonuses, average wages growth also slowed slightly to 6.1 ...