UK workers are experiencing a renewed cost-of-living squeeze as rising oil prices, linked to geopolitical tensions, push inflation higher, while wage growth slows for the second consecutive quarter. New official data reveals average earnings growth—including bonuses—has dipped slightly, aligning with economic expectations and raising concerns over household budgets. The Bank of England faces mounting pressure as it weighs interest rate decisions amid stagnating wage increases and soaring energy costs. With the state pension’s triple lock system tied to earnings performance, the figures could influence future payout adjustments for retirees.
Figure likely to dictate rise in state pension triple lock, as workers face inflation squeeze fuelled by oil price risesBusiness live – latest updatesWage growth in the UK has slowed as workers come under pressure from a renewed cost of living squeeze fuelled by the Iran war, highlighting the challenge for the Bank of England as it prepares to set interest rates.Figures from the Office for National Statistics (ONS) show average growth in total earnings, including bonuses, eased to 3.9% in the three months to July, down from 4.1% in the three months to June, matching the forecasts of City economists. Continue reading...
