Inflation Eases Pressure for High Pay Rises But Bank Concerned Over Wage Growth Risk
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Inflation peaked at 11.1% in Oct 2022 but has since fallen to 4.6% in October, easing pressure for high pay rises
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Pay growth reached 8% last summer as workers sought respite from cost pressures
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Views on cost of living matter more to pay rises than labor market tightness
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Bank of England concerned strong wage growth may keep inflation high
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Typical pay settlements dropped from 6% to 5% since early 2023 indicating easing wage pressure