UK wage growth held steady in the three months to June 2025, with regular pay excluding bonuses rising 5 percent year-on-year to £679 per week, according to data from the Office for National Statistics (ONS). The pace matched the previous period and market expectations, remaining at the slowest rate in nearly three years.
The stability in pay growth comes as policymakers closely monitor labour market conditions for signs of persistent inflationary pressures.
Public sector pay growth accelerated to 5.7 percent from 5.5 percent, the fastest increase since the three months to February. Private sector wage growth edged down to 4.8 percent from 4.9 percent.
Among industries, wholesale, retail, hotels, and restaurants recorded the largest annual increase at 6.8 percent, followed by services at 5.0 percent, manufacturing at 4.6 percent, construction at 4.2 percent, and finance and business services at 3.1 percent. The data reflects stronger pay pressures in consumer-facing sectors.
Adjusted for inflation, real wages rose 0.9 percent over the period, marking the weakest growth since the three months to July 2023. Analysts suggest that while higher public sector pay could boost consumption in the near term, the moderation in overall wage growth may reduce pressure on the Bank of England to keep monetary policy restrictive for an extended period.
Source: UK Office for National Statistics
Markets shifted toward risk-on sentiment as easing geopolitical tensions and uncertainty around Federal Reserve policy pressured the U.S. dollar. EUR/USD climbed toward 1.18, reaching multi-month highs, while sterling also advanced to a seven-week peak.
US-Iran Talks End Without BreakthroughDiplomatic negotiations between the United States and Iran ended without an agreement after more than 21 hours of discussions in Pakistan, marking another setback in efforts to ease pressure surrounding Iran’s nuclear program and regional role.
Detail
Oil Shock and Inflation Reprice Global Markets (13 – 17 April)Global sentiment shifted this week as markets balanced high-stakes diplomacy in Islamabad with a severe energy supply squeeze. While talks between US and Iranian officials provided a fragile glimmer of hope, the US-led blockade of the Strait of Hormuz, triggered by a breakdown in weekend negotiations, sent Brent crude surging 8% to approximately $103/barrel.
DetailThen Join Our Telegram Channel and Subscribe Our Trading Signals Newsletter for Free!
Join Us On Telegram!
