The increase was higher than expected and defied economic gravity, leaving the governor and the Chancellor of the Exchequer contemplating whether inflation will continue to do likewise.
The unemployment rate rose 0.2% to 4% and the number of vacancies in the economy fell to 1.034 million, indicating some signs of a slowdown in the labor market.
CPI inflation is still at 8.7%, and real incomes fell by 1.7% according to the ONS.
The Bank of England governor highlighted the overheated jobs market as a major driver of inflation, and markets anticipate yet another interest increase from the Bank of England in August.
LONDON DAILY ARCHIVE
UK Average Earnings Soar to New Record High, Defying Economic Gravity
The Office for National Statistics (ONS) reported that average earnings (excluding bonuses) in the UK rose 7.3% in the three months to May, the highest on record and matching the figure for April, which itself was revised upwards from 7.2%.
11 July 2023 · 16:00 UTC
