UK wage growth, inflation meet 1st time in almost 2 years

LONDON, Sept 12 (KUNA) -- Wage growth has caught up with rising prices for the first time in nearly two years, even as unemployment goes up, according to a statement released on Tuesday by the Office for National Statistics (ONS).

Regular pay, excluding bonuses, rose by 7.8 percent in May to July compared with a year earlier - matching the pace of inflation over the same period. Not everyone's pay will be rising by that amount. The figure is an average across the economy. There are also signs the jobs market is beginning to weaken, with fewer job vacancies and rising unemployment, said ONS However, unemployment rate in the May-July period was up to 4.3 percent for the first time in nearly two years, with the number of out of work just below 1.5 million.

The rate is low by historic standards, but has jumped from 3.8 percent in the previous three-month period.
Darren Morgan, director of economic statistics at the ONS, said earnings continued to increase at record rates, while inflation - the measure of how fast prices of goods and services are rising - has come down from its highs.

"This means people's real pay is no longer falling. That means the state pension is likely to rise by 8.5%, which would be a weekly increase of £13.30," said Morgan.
There will be an annual increase of 691.60 Pound Sterling on the basic state pension - taking the total for the year to 8,814 Pound Sterling. (end) nbs.sa.