BOE Back to Messed Up, UK Wage Growth Soars!

<p>&nbsp;Concerns about inflationary pressures are rising again in the UK after the latest data showed wage growth rose strongly in the three months to June.</p><p><br /></p><p>Average earnings excluding bonuses rose 7.8% in June, compared to 7.5% recorded in May.</p><p><br /></p><p>While average earnings including bonuses jumped 8.2% from 7.2% previously, at a stronger rate than analysts' estimates of 7.3%.</p><p><br /></p><p>The unemployment rate showed an increase at 4.2% from 4.0% in the previous reading and market expectations.</p><p><br /></p><p><br /></p><p>In addition, the number of people in work was reported to have fallen by 66,000 in the quarter to June, the biggest drop since August.</p><p><br /></p><p>Higher readings in wage increases indirectly raise concerns about rising prices (inflation) in the economy.</p><p><br /></p><p>The Bank of England (BOE) led by Governor Andrew Bailey previously said further signs of inflationary pressures could result in another increase in interest rates.</p><p><br /></p><p>Following the data, the initial reaction showed that the pound currency jumped to around 1.2710 against the greenback dollar.</p>