UK wage growth defies forecasts but slows to lowest level in more than a year

Regular pay eases less than expected

UK wage growth slowed less than expected in the final quarter of 2023 but reached its lowest level in over a year, the Office for National Statistics said today (13 February).

Annual growth in regular earnings, excluding bonuses, was 6.2% in the three months to December, slowing from 6.7% in the prior three-month period. Although economists had forecast a 6% reading, this was the slowest growth seen since the third quarter of 2022.  The annual pace of growth in total earnings, including bonuses, stood at 5.8% in the quarter, down from 6.7% in the three months to November. When accounting inflation, annual growth in real terms rose 1.4% for total pay and 1.8% for regular pay compared to the same period in the previous year. UK inflation rose by 4% in the 12 ...