Forex
U.K Wages Rise Faster Than Inflation Rate
- U.K Wages Rise Faster Than Inflation Rate
Wages in the U.K. grew at a faster pace than inflation for the three months through February.
Average earnings grew at 2.8 percent between December and February, same as the previous quarter but higher than the inflation rate for the first time since early 2017. Suggesting that the economy continued to defy post-Brexit slump predicted by most economists.
However, the pound dipped against the U.S. dollar to trade at $1.4301 on Tuesday. Still, experts believe the sustained growth will further strengthen the widely expected rate hike by the Bank of England in May.
Viraj Patel, foreign exchange strategist at ING, said the pound “now requires positive UK data surprises — in particular on the activity front — to continue on its charge higher.” He added: “In the absence of this today, we’ve seen a bit of profit-taking.”
Inflation grew at 2.7 percent in February and projected to moderate even further on rising pound value.
