Why is the UK salary growth so strong?

The capacity of the UK salary is a puzzle for economists and is a growing problem for the Bank of Stingmakers of England.

Inflation, widespread labor deficiency and waves of the public sector, 8.3 percent of the average nominal British profit in the summer of 2023, economy and employers began to hire employers. Productivity, a long-term definition of salary, has been since 2023.

The average earnings were still in three months to January 5.9 percent higher More than a year – and increased more than a semi-half inflation a year.

Greater salary packages are a concern for Boe, which is not provided with inflation in inflation, if a boost for households is not provided with its household finance, but also inflation.

Therefore, it will be critical to understand what happened and to the outlook for interest rates.

Is the right growth as strong as it really seems?

Boe’s Monetary Policy Committee has lowered the latest official salary information because he has announced the decision to leave interest rates unchanged 4.5 percent on Thursday.

The increase in the private sector is 6.1 percent, a medium-week earnings, the increase in growth was often shaved by some sectors where the growth was often changed. Other indicators, in February, in accordance with Boe’s estimate, the wage growth of a 5 percent higher than 5 percent

However, this is still an increase in wages, “he is a level that can be explained by a high level and economic grounds.”

MPC added that one of the two main risks to be directed to May the meeting of May was “Internal salaries and prices will be more determined.” Other risk, the economy was from geopolitical tensions that further disappear.

Will the growth pay?

The growth of salary is slowly visiting the next year. Official data shows moderating pressures in the past few months. The information gathered by Boe’s own research and research organization, employers will pay for existing personnel between 3 and 4 percent in 2025.

Some employers from April to April will score 1 to 2 percent of the impact of higher salary taxes.

However, the British economist, the counselor Pantheon macroecaders, is still very high to increase inflation at 2 percent, when it is not yet higher than 4 percent.

What does he drive?

A possible factor is a number of legal minimum wages. This does not affect the median gain at all. However, employers such as retailers, the next employers warned the “Ripple effect”, and increase the scale to make sure that the employees increase their salaries and promote progress again.

A change in the confusion of the work in the economy can also be part of the explanation. The data broadcast on Thursday, salary in the retail sector in the last year, the retail sector is employed in the professional areas and financial services.

At the Institute of Fiscal Research, these factors can only explain the “small fraction” of the increase in salary growth and the state of the economy.

Another probability that floats by Boe Governor Andrew Bailey – the increase in this productivity can be more increases because it does not believe in economists, as the increase in official data.

“As macal.

Why is the Bank of England worried?

Great care for Boe, a change of things in the structure of the UK economy, the “new normal” and inflation will grow at 3.5 or 4 percent of the work, “a new normal” is regulated at “new normal”.

“Kolren Lombardelli, Boe Governor Claire Lombardelli, warned the end of 2024.

Wood claims that this is already happening and politicians are “very planted” on the celebration of inflation in five and 10 years of inflation.

In the years leading to the covig pandemic, annual salary increase in the annual rate of 3 percent, because in the passage of time in time, inflation is about 2 percent, he said. Now, “Homes are waiting for the UK Bank to do nothing … and to allow inflation to be at a high level.”

Why don’t households spend?

It is an additional puzzle, so the wage earnings of real terms are still not increasing consumption costs. Official statistics show that both retailers and general housing consumption remain below the pandemic level, and the people who save a historic part of their revenues.

Analysts say they say that the costs reinstall the bumps out of time during the pandemic. However, people are still afraid of growing food, energy and housing costs, jobs and social cost threats, trade wars and re-lead.

Sandra Horsfield, Investment Bank Investment, “concern” for British consumers to increase higher defense expenses, as well as “anxiety”, as well as the United States (Great Britain) will be “concern”.