Bank of England Chief Economist Huw Pill said an expected rise in inflation this year would probably not lead to second-round price pressures but stronger-than-expected wage growth seen to date was a reason for caution and care in cutting borrowing costs.

Wage growth accelerated again in the final quarter of last year, new figures show, in a reminder that the UK economy still faces sticky price pressures. According to figures released by the Office for National Statistics (ONS),

Fresh data showing a continued acceleration in wage growth and surprise strength in the labour market has further complicated the Bank of England's path for interest rate cuts.

By William Schomberg and Andy Bruce LONDON (Reuters) -British pay growth accelerated in late 2024, according to data that suggested the jobs market was holding up and underscored why the Bank of England has been cautious about cutting interest rates despite a weak overall economy.