UK earnings growth unexpectedly slows
13 June 2007
13.06.07
UK earnings growth unexpectedly slows
UK average earnings growth slowed unexpectedly in April to 4.0% as New Year bonuses fell out of the three month calculation. The market had been expecting a figure around 4.5%. There was also a downward revision for March to 4.4% from a previous reading of 4.5%.
The news follows a drop in CPI yesterday to 2.5% and will help ease the concerns of the MPC surrounding inflationary pressures. Nevertheless, the market is still pricing in at least one further rate hike before year end.