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Wage growth in UK jumps ahead of inflation

The article from MoneyWeek discusses the current state of UK wage growth, highlighting several key points. Despite a slight increase in average weekly earnings, real wages are still falling when adjusted for inflation, which remains high. The Office for National Statistics (ONS) reported that total pay rose by 5.9% in the three months to May, but this growth is outpaced by inflation, leading to a decrease in real terms. Unemployment has also ticked up slightly, suggesting a cooling labor market. The article delves into the implications of this wage stagnation, including its impact on consumer spending, living standards, and the broader economic recovery. It also touches on the government's and Bank of England's responses to these economic indicators, with concerns about potential interest rate hikes to combat inflation, which could further strain household finances. The piece concludes by questioning the sustainability of current economic policies in the face of persistent wage growth challenges.

Read the Full MoneyWeek Article at:
[ https://moneyweek.com/economy/uk-wage-growth ]