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UK wage growth unexpectedly stalls even as jobless rate hits new four-decade low

Reuters  |  LONDON 

(Reuters) - Workers in Britain have still not seen their wages rise more quickly than despite falling to its lowest level since 1975, official data showed on Tuesday.

Wages in the three months to February rose by 2.8 percent, unchanged from the three months to January and weaker than a median forecast of 3.0 percent in a poll of economists.

over the period, as measured by the consumer price index, was around 2.9 percent.

The ONS said the rate unexpectedly fell to 4.2 percent, its lowest since the three months to May 1975.

The has said it expects the fall in to start pushing up pay more quickly, the main reason why it has said it is likely to raise interest rates more quickly than it previously thought.

British households - whose spending is the main of the country's - have been struggling from the double whammy of slow wage growth and a jump in inflation, due mostly to the fall in the value of the pound after the 2016 Brexit vote.

Excluding bonuses, earnings rose by 2.8 percent year-on-year in the three months to February, matching the median forecast in the poll, the ONS said.

An said bonus payments in February were lower than a year earlier but it was too soon to draw conclusions about the bonus season as a whole.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 14:03 IST