KPMG’s UK chief economist Yael Selfin said regular pay excluding bonuses rose
3.4% YoY in the three months to May, with little evidence recent energy-price
increases have been passed into pay settlements. Weak hiring is weighing on
workers’ bargaining power and private-sector wage growth remains below the level
consistent with the Bank of England’s 2% inflation target. Selfin expects the
BoE to keep rates unchanged at next week’s meeting and says energy-market
developments will likely play a larger role in shaping the rate outlook over
coming months.
