UK wages rise sharply in April, set to bolster expectations of another rate hike next week

By PAN PYLAS
Associated Press

LONDON (AP) — Official figures show that wages in the U.K. spiked sharply in April, a development that is set to cement expectations that the Bank of England will raise interest rates once again next week. The Office for National Statistics found Tuesday that people’s regular pay packets, which exclude bonuses, were up 7.2% in the three months to April from the same period the year before. That’s up from the equivalent 6.6% year-on-year increase recorded for January and is largely due to a near-10% increase in the minimum wage at the start of April. Though wages are still lagging the headline rate of inflation, the increase is likely to feature heavily in next week’s deliberations among rate-setters at the Bank of England.