Accountancy lobby group ICAEW said the weak UK labour market appears likely to restrain inflation by suppressing wage growth, lowering the probability of a September Bank of England rate hike. ICAEW chief economist Suren Thiru said the labour market remains low‑mobility and stagnant, with rising costs, worsening global headwinds and greater policy uncertainty leaving employers reluctant to hire, fire or award large pay rises. Falling vacancies point to weakening labour demand, and speculation ov

Accountancy lobby group ICAEW said the weak UK labour market appears likely to restrain inflation by suppressing wage growth, lowering the probability of a September Bank of England rate hike. ICAEW chief economist Suren Thiru said the labour market remains low‑mobility and stagnant, with rising costs, worsening global headwinds and greater policy uncertainty leaving employers reluctant to hire, fire or award large pay rises. Falling vacancies point to weakening labour demand, and speculation over the autumn budget could further curb hiring.