Investing.com - The UK employment report on Wednesday showed that wage growth picked up and the jobless rate unexpectedly dropped, putting pressure on the Bank of England to raise interest rates in the coming months.
The report came a day after official figures showing that annual inflation slowed in February. The shrinking gap between wages and inflation indicate that the cost of living squeeze in UK households may be coming to an end, giving the BoE more leeway to hike interest rates.
In February the bank indicated that interest rates were likely to go up more quickly than previously expected if the economy remained on its current track.
Average earnings, excluding bonuses, rose by an annual 2.6% in the three months to February, compared with 2.5% in the three months to January.
Including bonuses, pay growth rose by an annual 2.8%.
The unemployment rate fell to 4.3%, below the consensus forecast of 4.4%.
The number of people in employment rose by 168,000 in the three months to February, while the claimant count, which measures the change in the number of people claiming unemployment benefits, rose by 9,200 in the same period.