P.M. BRIEFING : Pace of British Wage Hikes Slows
Britain said today that wage increases slowed in June, giving what economists called an unexpected boost to the government’s fight against inflation.
Official figures showed that average earnings rose 9% in the year ended June 30 on a seasonally adjusted basis, down from 9.25% in the 12-month period ended May 31.
Slower wage growth is good news for the government, economists say, because it keeps consumer spending power in check and helps the battle to control inflation--now running at 8.3%--and cool an overheated economy. Financial markets had been expecting a figure of around 9.5%.
Also today, the Department of Employment said the national unemployment rate, at 6.3%, was unchanged from the previous month.
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