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GBP soared higher again today in response to the latest UK labor market data which showed UK wages growing at their fast pace in nine years while the unemployment rate remained at 43-year lows.
The data, released by the Office for National Statistics, said on Tuesday that Average earnings excluding bonuses rose by 3.1% in the three months to August, their fastest 3-month rise since January 2009.
The news will come as a significant boost for GBP bulls as, despite wage growth still sitting below pre-crisis levels, with productivity, it means that even a slight rise could translate into upward inflationary pressure with businesses forced to raise prices to protect their profits.
Wages Now Rising Faster Than Prices
The latest data will also come as a boost for the UK consumer with wages now growing faster than prices which have not been seen since the Brexit referendum in 2016. The BoE forecasts wages to rise further, projecting a 2.5% level by next year.
Public Sector Pay Rises Most Sinc...
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