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For Clues on Why the BOE Hasn’t Cut Rates, Just Head to the Pub

Pay growth in the hospitality sector is running at about 8% — higher than the national average — according to PAYE data analyzed by Capital Economics. Firms are competing over a shrinking talent pool after Britain’s departure from the European Union cut the flow of workers. “The recent stickiness of wage growth in these sectors is a bit worrying and could mean that wage growth, and therefore CPI services inflation, falls slowly,” said Paul Dales, chief UK economist at Capital Economics.

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