UK pay growth slows to 2.5%

UK workers’ pay growth has slowed to its weakest rate in six months, despite record employment, adding to the Bank of England’s dilemma of whether to raise interest rates for only the second time since the global financial crisis.

Average weekly earnings rose by 2.5% on the year in the three months to May, losing speed from the previous three-month period, when they grew by 2.6% and its weakest since the three months to November, the UK’s Office for National Statistics said.