Wages grew faster than inflation for the first time in almost a year in February and the jobless rate fell to just 4.2 per cent according to the latest official data.
The Office for National Statistics reported that wages were up 2.8 per cent in the three months to February on a year earlier, higher than the 2.7 per cent rate of consumer price inflation over that period.
Real wages turned negative in April 2017 as inflation – due to the plunge in the pound in the wake of the Brexit vote – jumped.
Meanwhile, the unemployment rate in February ticked down to 4.2 per cent, from 4.3 per cent previously.
However, the wages data was weaker than the 3 per cent growth that many City of London analysts had anticipated, sending sterling down to $1.4338.