Wage pressures have peaked, but may ease only gradually

There is a growing body of evidence that suggests wage pressures are past their peak, but it’s not clear how quickly wage growth will slow. The gradual loosening in the labour market and the experience in the US suggests that UK wage growth may ease only slowly. We don’t expect wage growth to fall to the rates of 3.0-3.5% that are consistent with the 2.0% inflation target until early in 2025.

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