020 7898 0500Figures released by the Office for National Statistics showed that UK wage growth slowed to 2.8% in the three months to April and, including bonuses, dropped to 2.5% from 2.6% in the previous period. In recent times, average earnings have overtaken inflation to ease the cost of living burden UK households were facing, but this drop will increase the pressure on the British public. The fall is surprising in light of the fact that BoE claimed that the fall in unemployment would lead to stronger earnings growth throughout 2018 and beyond.
In other news, Justice Minister, Phillip Lee, resigned over the government’s position on Brexit. Lee, who supported remain at the referendum, quit because he believes the Conservatives’ Brexit policy is detrimental to his constituents. The resignation was a blow for Theresa May as it increased the number of rebels who planned to oppose the government on a key amendment to the withdrawal bill. However, May did manage to get approval from the House, albeit by a slender margin. She has been forced to grant several concessions to rebel MPs and it really does highlight how precarious her position is.
Today is a busy one for the UK, with the retail price index for May scheduled for release, as well as the all-important inflation rate. It is expected to creep a little higher, from 2.4% to 2.5%, which would narrow the gap to average earnings once more.
