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16 Apr 2014
Sterling rallies strongly on encouraging labour market data
FXStreet (London) - According to data released this morning by the UK Office for National Statistics, UK earnings (inc. bonuses) increased by 1.7 percent in the 3 months to February. Although wage increases missed expectations of a 1.8 percent rise, the figures released today indicate that wages are now outstripping inflation for the first time in five years.
Data released this week showed that UK consumer price index inflation fell to 1.6 percent, a four-and-a-half-year low.
Ex bonuses, UK wage growth remains below inflation, gaining 1.4 percent in the three months to March.
Real wages begin to see upside
The latest bout of UK data is a positive sign and should help to ease some pressure on households, but after more than 5 years of real wage declines, the Office for Budget Responsibility estimates that incomes will not return to 2010 levels until 2017-18.
Strong unemployment numbers
While wage data missed consensus expectations, unemployment fell sharply. The unemployment rate fell to 6.9percent for December 2013 to February 2014, down from 7.1 percent for September to November 2013 and from 7.9 percent for a year earlier.
Sterling has rallied strongly on the encouraging data up 0.43 percent against the dollar on the session so far. The pair is currently trading at USD1.6802 after hitting a high of USD1.6818.
Data released this week showed that UK consumer price index inflation fell to 1.6 percent, a four-and-a-half-year low.
Ex bonuses, UK wage growth remains below inflation, gaining 1.4 percent in the three months to March.
Real wages begin to see upside
The latest bout of UK data is a positive sign and should help to ease some pressure on households, but after more than 5 years of real wage declines, the Office for Budget Responsibility estimates that incomes will not return to 2010 levels until 2017-18.
Strong unemployment numbers
While wage data missed consensus expectations, unemployment fell sharply. The unemployment rate fell to 6.9percent for December 2013 to February 2014, down from 7.1 percent for September to November 2013 and from 7.9 percent for a year earlier.
Sterling has rallied strongly on the encouraging data up 0.43 percent against the dollar on the session so far. The pair is currently trading at USD1.6802 after hitting a high of USD1.6818.