UK pay growth slows less than expected as workers bid up wages

December figures pose dilemma for Bank of England, dampening hopes of early interest rate cut

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Pay growth slowed less than expected in December as workers continued to bid up their wages amid skills shortages and a record number of people with long-term sickness.

The Office for National Statistics (ONS) said annual growth in regular earnings, excluding bonuses, was 6.2% in October to December 2023, while pay rises including bonuses was 5.8%.