Another rate rise on the cards after 'exceptionally strong' wage growth say economists

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Another rate rise on the cards after 'exceptionally strong' wage growth say economists
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Experts have previously told i that interest rates may be near the peak - though today's wage data suggests another hike next week is more likely

may be the the highest – or close to the highest – that they will goBut economists fear high wages can feed in to high inflation – by increasing the surplus cash people have to spend on goods and services – and that a hike in interest rates may be needed to quash this.

It is the first time since October 2021 that wages have overtaken inflation, which soared to a 40-year high of Annual growth in pay including bonuses leapt by 8.5 per cent in May to July, with earnings boosted by one-off payments to NHS and Civil Service staff.

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