020 7898 0500For the first time in approximately a year, wages have risen faster than the cost of living. Figures released from the Office for National Statistics showed that basic earnings increased by 2.8% in the three months up to February. However, there was some disappointment as, including bonuses, the figure had been expected to increase to 3%.
The pound had been steadily strengthening against the dollar in the run-up to the release, but it quickly fell back after the data was published. Where next for the pound then? The markets still appear convinced of a Bank of England interest rate rise in May, but much could depend on the inflation data released today. Against the euro, the pound fared a little better by trading sideways.
In addition to the aforementioned inflation rate for March (which is expected to hold steady at 2.7%), we will also see the retail price index for the same month.
