Key facts
- UK wage growth including bonuses reached 4.1% between April and June.
- UK wage growth including bonuses exceeded the 4% market forecast.
- Public sector pay awards primarily drove the increase in UK wage growth.
- Private sector wage growth eased.
- UK annual wage growth excluding bonuses rose to 3.5% in the second quarter.
- UK wage growth excluding bonuses beat economists' expectations of 3.4%.
- The Bank of England closely watches wage growth for signs of persistent inflation.
UK wage growth, including bonuses, reached 4.1% in the period between April and June, surpassing the 4% market forecast. This acceleration was primarily driven by higher pay awards in the public sector. Meanwhile, wage growth in the private sector saw a slight easing. Excluding bonuses, annual wage growth in the second quarter rose to 3.5%, exceeding economists' expectations of 3.4%. This metric is closely watched by the Bank of England as an indicator of persistent inflation.